Running a business comes with inherent operational risks. A customer slipping in your retail shop or accidental damage caused to client property on-site can result in lawsuits that cripple an uninsured business.
What Does Commercial General Liability (CGL) Cover?
As outlined in our insurance guide, CGL serves as the primary shield against third-party claims:
- Third-Party Bodily Injury: Covers hospital bills, ambulatory transport, and settlement payouts if a non-employee is injured on your premises.
- Third-Party Property Damage: Pays for repairs if your team accidentally damages a customer’s or client’s property during operations.
- Personal and Advertising Injury: Defends against allegations of copyright infringement in marketing, libel, slander, or false arrest.
- Legal Defense Costs: Covers attorney fees, expert witness costs, and court fees, which can quickly exceed tens of thousands of dollars even if your business is innocent.
Typical CGL Policy Limits and Costs
| Industry / Business Type | Recommended Limits | Average Monthly Premium |
|---|---|---|
| Consulting / Digital Agency | $1M occurrence / $2M aggregate | $30 – $55 |
| Retail Store / E-commerce | $1M occurrence / $2M aggregate | $45 – $80 |
| Construction & Trades | $2M occurrence / $4M aggregate | $90 – $180 |
Pairing Insurance with Business Funding
Securing commercial liability insurance is often a prerequisite when applying for SBA small business loans or setting up dedicated commercial lines of credit. For daily business operations, utilize rewards business credit cards to manage premium cash flow.