How to Get General Liability Insurance
Getting general liability insurance means contacting a licensed insurance agent or broker with details about your business, industry, revenue, location, and employee count, and comparing quotes on coverage limits and exclusions, not just price. Per the SBA, general liability covers bodily injury, property damage, and the legal cost of defending a claim, and while no state requires every business to carry it, landlords, clients, and some industry licenses commonly do.
By LLC Register · Last reviewed October 2, 2026
Comprehensive Guide
Know What General Liability Actually Covers Before You Shop
Per the SBA, general liability insurance covers bodily injury, property damage, medical expenses, and the cost of defending lawsuits or paying settlements related to those claims. It's the broadest and most commonly carried business policy, but it doesn't cover everything; professional errors or negligence claims typically fall under a separate professional liability policy, and a defective product typically falls under product liability coverage instead.
Check Whether You're Already Required to Carry It
No state requires every business to carry general liability insurance simply because it's a business. What actually drives the requirement in practice is usually a commercial lease that requires proof of coverage before you can occupy a space, a client contract that requires a minimum coverage level before work begins, or a state licensing board's rule for a specific regulated profession. Read your lease and any client contracts for a specific coverage minimum before assuming none applies.
Gather the Details an Agent Will Need
Insurance premiums depend on the business's industry, annual revenue, location, number of employees, and claims history, so there's no single flat cost that applies to every business. Before contacting an agent, gather an estimate of your expected revenue, your business address, your industry or the specific services you provide, and your employee count, since this is what lets an agent or broker quote coverage accurately rather than give a rough guess.
Get Quotes From a Licensed Agent or Broker
Contact a licensed insurance agent or broker, who can either represent multiple insurance companies or work directly for one, and request a general liability quote based on the details you've gathered. Ask specifically about the coverage limit (the maximum the policy pays out per claim and in total) and any exclusions for your specific industry, since two quotes at similar prices can still differ significantly in what they actually cover.
Consider Bundling With Property Coverage
If the business also needs commercial property coverage for a leased or owned space, ask about a business owner's policy (BOP), which the SBA describes as bundling general liability and property coverage into one policy. Comparing a bundled BOP quote against separate policy quotes can reveal real savings, though it isn't automatically cheaper for every business.
Request a Certificate of Insurance Once Coverage Is Active
Once the policy is in place, your insurer can issue a certificate of insurance, a document summarizing your coverage and limits. This is typically what a landlord or client actually asks to see as proof of coverage, rather than the full policy itself, so keep a current copy on hand to provide whenever it's requested.
Practical Considerations
A Sole Proprietor Can Still Need This Coverage
General liability insurance isn't tied to a specific business structure; a sole proprietor doing in-person work, such as a contractor or a mobile service provider, often has just as much exposure to a bodily injury or property damage claim as an LLC or corporation doing the same work. Don't assume the business structure alone determines whether this coverage matters.
Review Coverage Again After Any Major Change
Adding a new service line, a new location, or a significant jump in revenue can all change what coverage limit actually makes sense. Revisit your policy at renewal, and after any major change to the business, rather than assuming the original quote still fits.
A Lower Premium Can Mean a Lower Limit or More Exclusions
Comparing quotes on price alone can be misleading if the cheaper option also carries a lower coverage limit or excludes a risk that matters to your specific business. Ask directly what's excluded, not just what's included, before choosing a policy.
Keep the Certificate of Insurance Updated
A certificate of insurance reflects your coverage as of a specific date; if your policy changes or renews, request an updated certificate so the version a landlord or client has on file is still accurate.
This Is Not Legal or Insurance Advice
What coverage limit and policy type fit a specific business depend on its risks, contracts, and industry. Talk to a licensed insurance agent or broker about your specific situation rather than relying on general guidance alone.
Sources
The official sources used for this article.
SBA: Get business insurance | sba.gov/business-guide/launch-your-business/get-business-insurance |
|---|---|
SBA: Apply for licenses and permits | sba.gov/business-guide/launch-your-business/apply-licenses-permits |
U.S. Department of Labor: State workers' compensation officials | dol.gov/agencies/owcp/wc |
Created by: LLC RegisterLast reviewed October 2, 2026
Updated: October 2, 2026
Frequently Asked Questions
What does general liability insurance typically cover?
Per the SBA, it covers bodily injury, property damage, medical expenses, and the legal cost of defending a lawsuit or paying a settlement tied to those claims. It generally doesn't cover professional errors, which fall under a separate professional liability policy, or defective products, which fall under product liability coverage.
Does a sole proprietor need general liability insurance?
It depends on the work, not the business structure. A sole proprietor who interacts with clients in person or on their property can face the same bodily injury or property damage exposure as an LLC or corporation doing identical work, so the need is based on the business's activities.
What information does an insurance agent need to quote general liability coverage?
Typically your industry or specific services, expected annual revenue, business location, and number of employees, since premiums are based on these factors along with claims history. Gathering this information before you call speeds up getting an accurate quote.
What is a certificate of insurance, and when will I need one?
It's a document from your insurer summarizing your coverage and limits, which is what a landlord or client typically requests as proof of insurance rather than the full policy. Request one once your policy is active, and get an updated copy whenever your coverage changes or renews.
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