How much does general liability insurance cost?

It varies widely by industry and size — a low-risk office might pay a few hundred dollars a year, while a roofing contractor pays substantially more because the class code carries far more risk. Premium is driven mainly by your class code and your revenue or payroll.

What’s the difference between general liability and professional liability?

GL covers physical harm — bodily injury and property damage to others. Professional liability (E&O) covers financial harm from your advice or services, like a mistake or missed deadline. Many service businesses need both.

What limits do I need?

$1M per occurrence / $2M aggregate is the most common baseline, but your contracts dictate the real answer — some require higher limits plus an umbrella and specific endorsements. We match your policy to what your contracts actually require.

Does general liability cover my employees if they’re injured?

No — employee injuries are covered by Workers’ Compensation, not GL. GL covers injuries to third parties (customers, visitors, the public).

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General Liability Insurance

Also known as Commercial General Liability (CGL)

The "oops, somebody got hurt" policy almost every contract makes you carry — and the one you’ll be really glad you didn’t skip.

General liability is the bedrock of your insurance program — the policy that quietly has your back when business gets messy. A customer slips in your lobby, your crew backs a Bobcat into a client’s fence, or a competitor swears your tagline was their idea first? GL is what steps in, covers the damage, and pays to defend you — even when the claim is, frankly, ridiculous. It’s also the coverage your landlord, your clients, and the permit office want to see before they’ll do business with you, so it’s less "nice to have" and more "show me the certificate." Just keep one thing straight: GL is about other people and their stuff. Your own employees, your vehicles, your professional advice, and your own property each ride on a different policy — and keeping all of them lined up with no gaps in between is, conveniently, exactly what we do.

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Reviewed for accuracy by Mark Hutchings, Licensed Insurance Producer (NV #3600994).

Who needs General Liability?

You run a business with a physical location, a jobsite presence, or any face-to-face customer contact
You’re a contractor or tradesperson — GL is almost always required to pull permits and sign subcontracts
You lease commercial space and your landlord wants a certificate of insurance naming them as additional insured
You’re bidding on work where the client requires proof of coverage at specific limits

What it covers

Third-party bodily injury (a customer or visitor is hurt on your premises or by your operations)
Third-party property damage caused by your business or your completed work
Products & completed-operations liability (claims arising after a job is finished or a product is sold)
Personal & advertising injury — libel, slander, copyright infringement in your advertising
Medical payments — small, no-fault medical bills regardless of who was at fault
Legal defense costs, settlements, and judgments up to your policy limits

What it doesn’t cover

Injuries to your own employees — covered by Workers’ Compensation
Professional mistakes, faulty advice, or errors in services — covered by Professional Liability (E&O)
Accidents involving business vehicles — covered by Commercial Auto
Damage to your own building, equipment, or inventory — covered by Commercial Property
Cyber incidents and data breaches — covered by Cyber Liability
Intentional acts, pollution, and (often) work performed by uninsured subcontractors

Real claim scenarios

Slip-and-fall at your business

A customer slips on your freshly mopped floor, breaks a wrist, and sues for medical bills and lost income. Your GL responds to the medical costs, the legal defense, and any settlement.

Damage to a client’s property

Your crew accidentally cracks the driveway next to the one you’re working on. GL pays to repair the third-party property you damaged.

Advertising-injury claim

A competitor claims your ad copy ripped off their slogan. Your GL’s personal & advertising injury coverage funds your defense and any covered damages.

Scenarios are illustrative; actual coverage depends on your policy terms.

How it’s priced

Your GL premium comes down to how much risk your operations present to other people. Carriers start with your industry classification and your size, then adjust for your limits, location, and claims history.

Class code — your industry’s loss history (a roofer rates very differently than an accountant)
Exposure basis — usually gross revenue or, for many contractors, payroll or subcontracted cost
Limits and deductible — common limits are $1M per occurrence / $2M aggregate; higher limits cost more
Location and area served — Nevada vs California, and whether you work at heights or on others’ premises
Claims history and years in business
Endorsements required by your contracts (additional insured, waiver of subrogation, primary & non-contributory)

What to watch out for

Occurrence vs. claims-made: most GL is “occurrence” (covers incidents that happen during the term, even if reported later) — confirm yours is, especially if quoted unusually cheap.
Contracts often require more than a $1M/$2M policy alone provides — additional insured + waiver of subrogation endorsements, primary & non-contributory wording, and sometimes a $1M umbrella on top.
For contractors, watch the “your work” and subcontractor exclusions — and require certificates from every sub, or you’ll pay for their exposure at audit.
The products/completed-operations aggregate is separate from the general aggregate — make sure it’s adequate if you do installation or build work.
A certificate of insurance is proof, not coverage — the endorsements have to actually be on the policy.

General Liability FAQs

GL is generally not mandated by state law, but it is effectively required in practice — most commercial leases, client contracts, and permits require you to carry it and show proof, and many licensing boards expect it.

Related coverages

Get General Liability coverage that fits

We’ll match your limits and endorsements to what your contracts actually require — across Nevada & California.

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