Coverage Types
Liability Insurance — What It Actually Covers
General liability is often the first policy a business owner needs — and one of the most misunderstood. Here's what it does and doesn't cover, in plain language.
General liability insurance covers the everyday accidents and incidents that can happen when you're running a business: a client gets hurt, property is damaged, or someone claims your advertising caused them harm. It's the policy that keeps one bad day from becoming a financial catastrophe.
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What general liability actually covers
Bodily injury (a client slips in your office), property damage (you accidentally break a client's equipment), and personal and advertising injury (libel, slander, or copyright infringement claims). It does not cover your own injuries or your employees — those require separate policies.
How much does it cost for a small business?
Most small business owners pay between $40–$80 per month. The exact cost depends on your industry, how many clients you see in person, your revenue, and your location. Service-based businesses like consultants and coaches typically pay on the lower end of that range.
Do you need it even if you have an LLC?
Yes. An LLC protects your personal assets from business debts — but it does not protect your business assets from a lawsuit. If someone sues your LLC and wins, your business bank account, equipment, and contracts are all at risk. Liability insurance is what actually pays the legal costs and any settlement.
