General liability insurance does not require an LLC. Sole proprietors, partnerships, corporations, and LLCs can all purchase a general liability policy. Business liability insurance covers any business structure. Many small business owners get general liability coverage before formally registering their business.
FAQ_category: (HIDDEN) Industry FAQs
Commercial general liability insurance coverage includes bodily injury, property damage, personal and advertising injury, products and completed operations, and medical payments. It pays legal defense costs and settlements awarded against your business. Commercial general liability insurance does not cover employee injuries, professional errors, or damage to your own property.
A $1,000,000 general liability policy costs most small businesses between $400 and $1,500 per year. Your rate depends on your industry, location, number of employees, and claims history. Low-risk businesses like consultants pay toward the lower end. Contractors and restaurants pay more. Most clients require the $1 million per occurrence limit before signing a contract.
General liability covers operational accidents, while product liability covers injuries or damage caused by products.
Examples include contaminated food causing illness or a defective product causing property damage.