Commercial general liability (CGL, or just GL) responds when someone outside your business — a customer, a vendor, a property owner, a passer-by — says your operations, premises, products, or completed work caused them bodily injury or property damage.
It is also the policy clients, landlords, general contractors, and event venues ask to see before they will work with you. A certificate of insurance showing GL is often the price of admission for a contract.
What General Liability typically covers
- Bodily injury. Medical bills, lost wages, and legal claims when a third party is hurt because of your premises or operations.
- Property damage. Damage you cause to someone else’s property — a ladder through a client’s window, water damage from a job, a dropped load at a customer’s site.
- Products & completed operations. Claims that arise after a product leaves your hands or after a job is finished — important for contractors, installers, and anyone who sells goods.
- Personal & advertising injury. Claims of libel, slander, false arrest, or certain advertising offenses like copying someone’s ad idea.
- Medical payments. Small no-fault medical bills for someone hurt at your location, which can head off a larger claim.
- Legal defense. Attorney fees and court costs to defend a covered suit — often paid in addition to your limit on standard forms, even if the claim is groundless.
A painting crew’s drop cloth slips and a homeowner’s antique floor is gouged by a falling ladder. The homeowner demands $18,000 for refinishing. General liability can pay the covered property damage and defend the contractor if the homeowner sues.
Businesses that commonly carry General Liability
- Contractors and trades working at client properties
- Any business with customers visiting a location
- Businesses that sell, install, or distribute products
- Vendors at events, markets, and festivals
- Businesses whose contracts or leases require certificates of insurance
- Home-based businesses that meet clients in person
What it usually does not cover
- Your own property and work. GL covers damage to others’ property, not your tools, building, or the cost to redo your own faulty work.
- Employee injuries. Those belong to workers’ compensation and employers liability.
- Auto accidents. Vehicle-related liability belongs on a commercial auto policy.
- Professional errors. Bad advice or a professional mistake that causes only financial loss is professional liability territory.
- Pollution and mold. Most GL forms broadly exclude pollution; contractors who handle chemicals may need a separate pollution policy.
- Intentional acts and contractual promises. Expected or intended harm is excluded, and liability you take on by contract is covered only in limited “insured contract” situations.
Independent means we compare — not just quote one company
GL markets we can shop include Next, Coterie, Thimble, Hiscox, Chubb, and The Hartford, plus surplus-lines options for harder classes. Availability varies by state, class code, and underwriting.
Tips before you buy
- Most contracts ask for $1 million per occurrence / $2 million aggregate. Confirm what your clients actually require before you buy.
- Ask whether the policy includes blanket additional insured, waiver of subrogation, and primary & non-contributory wording — GCs and landlords often require all three.
- Describe your operations accurately. A GL policy rated as “handyman” may not respond the way you expect to roofing or electrical work.
- Keep certificates organized — we can issue them for you quickly when a client asks.
Coverage that pairs with General Liability
Business Owners Policy (BOP)
Liability + property + business income in one package for eligible small businesses.
Learn moreCommercial Umbrella
Extra liability limits above your GL, auto, and employers liability policies.
Learn moreProfessional Liability / E&O
Claims that your advice, service, or professional mistake cost a client money.
Learn moreTools & Equipment (Inland Marine)
Tools, equipment, and property on the move or at job sites.
Learn morePopular with: Contractors & Trades · Landscaping & Lawn Care · Retail & Boutiques · Restaurants & Food Service · All commercial coverage
General Liability questions
Is general liability required by law?
Usually not by state law, but it is very often required by contracts, leases, licensing boards, and permit offices. Many clients will not hire a contractor without proof of GL.
What limits should I carry?
$1 million per occurrence and $2 million aggregate is the most common starting point. Larger contracts may require higher limits, which are often more affordable through a commercial umbrella.
What is a certificate of insurance (COI)?
A one-page summary that proves you carry coverage. It does not change your policy by itself. If a client needs to be an additional insured, that has to be added to the policy by endorsement — we handle both.
Does general liability cover my mistakes in my work?
It covers damage your work causes to other property, not the cost of fixing the work itself. If your business gives advice or professional services, professional liability fills that gap.
Can I buy general liability for just one job or event?
Some carriers offer short-term or event policies. For most ongoing businesses an annual policy is simpler and cheaper per day. Ask us which fits.
We cover your assets
Let’s build the right commercial program
Tell us about your business once. We shop multiple carriers, explain the trade-offs in plain English, and handle certificates, audits, and renewals after you bind.
Educational only — not a policy, quote, or coverage guarantee. Coverage, eligibility, and carrier availability vary by state, class of business, and underwriting. Policy language controls. Talk with a licensed Asshield agent about your situation.