Running a business involves risks that can lead to unexpected financial losses. Whether you operate a contracting company, retail store, restaurant, or professional service business, an accident involving a third party could result in a costly liability claim.
General liability insurance is designed to help protect businesses against certain claims involving bodily injury, property damage, and personal or advertising injury.
What Does General Liability Insurance Cover?
A commercial general liability (CGL) policy typically provides coverage for certain claims involving:
Third-Party Bodily Injury
If a visitor slips and falls at your business and suffers an injury, general liability insurance may help cover covered medical expenses, legal defense costs, and damages.
Third-Party Property Damage
If your business operations accidentally damage someone else's property, a general liability policy may provide protection.
Personal and Advertising Injury
Certain claims involving libel, slander, or other specified personal and advertising injuries may be covered, subject to policy terms.
Legal Defense
General liability policies generally include a defense obligation for potentially covered claims, subject to policy conditions and exclusions.
What Doesn't General Liability Insurance Cover?
General liability insurance is not designed to cover every business exposure.
Common coverage gaps include employee injuries, damage to your own business property, professional errors, and certain automobile-related accidents.
Businesses may need additional policies, such as workers' compensation, commercial property, commercial auto, or professional liability insurance.
Is General Liability Insurance Required in Florida?
Florida does not impose a universal general liability insurance requirement on every business.
However, certain licensing requirements, contracts, landlords, or project owners may require businesses to maintain specific liability limits.
Contractors should pay particular attention to insurance requirements established by licensing authorities and contractual agreements.
How Much General Liability Insurance Does a Business Need?
Coverage needs depend on the type of business, operations, contractual obligations, annual revenue, and potential liability exposures.
Many commercial general liability policies are structured with separate per-occurrence and general aggregate limits.
An insurance agent can help evaluate whether those limits are appropriate for your business.
Frequently Asked Questions
Does general liability cover my employees if they get hurt?
Generally, no. Employee workplace injuries are typically addressed through workers' compensation insurance.
Does general liability cover damage to my business building?
Generally, no. Damage to property owned by the business is typically addressed through commercial property insurance.
Do independent contractors need general liability insurance?
Many independent contractors carry general liability insurance because clients, property owners, and general contractors may require proof of coverage.
Protecting Your Florida Business
Insurance Scout Partners is an independent Florida insurance agency helping businesses compare commercial insurance options from multiple insurance companies.
Whether you're establishing a new business or reviewing existing coverage, our team can help you evaluate available protection based on your operations and insurance needs.
Request a General Liability Insurance Quote
Coverage availability, terms, limits, and exclusions vary by insurer and policy.