General liability insurance is coverage that protects your business from the costs of lawsuits filed against it by customers, clients, and other third parties. Because it’s common for companies to be sued, every business should learn about general liability insurance and consider purchasing a policy.

Contractors need various types of insurance policies (workers’ compensation, commercial auto, cyber, and others) to protect their companies from business risks. This includes general liability insurance. It covers things like damage to customer property, bodily injuries to non-employees, and other so-called “exposures.”

Let’s start by answering the most important question: What is general liability insurance? Companies get financial protection from general liability insurance, meaning they can operate without fear of taking on a huge expense if they’re sued for covered incidents.

General liability insurance is a type of coverage that many businesses have and all companies should consider. It can protect your business from many types of risk. When looking into the average cost for general liability insurance, it’s important to remember that this coverage includes customer property damage, non-employee bodily injuries, product liability, libel, slander, and copyright infringement.

Every small business faces the risk of lawsuits filed by customers or others who claim the company is responsible for damage to their property, personal injuries, or financial harm. Coverage like general liability insurance, for example, can pay for legal costs and also financial damages awarded by the court if your business is found to be liable.

Operating any type of business involves risk or liability. Fortunately, there is small business insurance that can protect you from the financial impact of those risks. Two of the many types of coverage available are professional liability insurance (also called errors and omissions or E&O insurance) and general liability insurance. When it comes to general liability versus professional liability, it can be difficult to know which type of coverage you need.

A business owners policy (or BOP) and a general liability policy have many things in common. For example, they both provide protection from financial liability for many types of incidents. This includes accidental damage to customer property and injury to non-employees on the policyholder’s property.

If you own a small business, you know you face business risks and may wonder, “What are some common general liability insurance claims?” That’s an important question, as the answer can help you understand whether you need general liability insurance (most businesses do) and if so, how much.

You might be wondering “What is commercial general liability insurance coverage and why might I need it?” General liability insurance (GL), sometimes called commercial general liability insurance, protects your company from risks you face every day—things like damage to the property of others, bodily injury to customers, product liability, libel, and copyright infringement—and claims that may be filed against your company as a result.