Does Your Business…
- Operates in a location that is open to the public
- Works closely with clients on-site
- Have customers frequently coming on site
- Handles client property
- Rents a commercial property
- Owns a commercial property

Best Protection For Any Business.
Commercial general liability insurance is intended to cover common business risks like customer injury, customer property damage, and advertising injury. These policies are designed to protect small businesses from the potentially high costs of lawsuits and other out-of-pocket expenses. In many cases, a commercial general liability insurance policy will be required to qualify for leases and contracts.
Does My Small Business Need General Liability Insurance?
A lot of small companies need general liability insurance. It is especially beneficial for businesses that rent or own an office in a commercial space. Not to mention, most client contracts include some type of requirement for general liability coverage.
Even small businesses that aren’t required by law or contract to carry general liability insurance will still benefit from commercial general liability insurance, also known as a CGL policy. This type of insurance policy can play a critical role in keeping your business financially stable in a scenario where you might be sued by a customer or a competing company in your sector.
What’s Covered?
General liability insurance is designed to provide comprehensive coverage for a wide range of common liability claims from third parties. This includes covering legal defense costs should a third party sue your company over a bodily injury, property damage, or advertising injury. A commercial general liability policy essentially helps pay for everything from hiring a lawyer to court-ordered judgments and potential settlement costs.
Are You At Risk?
Even if your business isn’t specifically required by law or contract to carry a CGI policy, you should still strongly consider getting one if your business:
- Operates in a location that is open to the public
- Works closely with clients on-site
- Have customers frequently coming on site
- Handles client property
- Rents a commercial property
- Owns a commercial property
Is Small Business Required To Carry A CGI Policy By Law?
Most states mandate commercial general liability policies for certain industries like construction, and might not directly require it by law. Though general liability insurance might still likely be required by your landlord, mortgage company, or clients.
Providing A Landlord With Proof Of CGI
Many landlords, commercial property owners, and even some clients might ask to see proof that your business has up-to-date general liability insurance coverage. This is a special type of document that verifies your business can handle any personal injury or property damage lawsuits at a compliant level.
You might also need to provide a proof of CGI certificate to your property manager, bank, or customer peace of mind that they won’t be stuck paying the costs of a lawsuit against your company.

Different Layers Of Commercial General Liability Coverage
General liability insurance coverage starts by helping your small company pay for legal fees from a lot of common third-party lawsuits. This includes coverage to help protect home businesses, contractors, and small businesses.
What Information Do I Need To Apply?
When applying for commercial general liability insurance for the first time, you need to collect the following information:
- The name of your business
- Type of business operation(s)
- The number of employees
- Industry risk factors
- Location
How Much Does A CGI Policy Cost?
Several factors go into the cost of a Commercial General Liability Insurance policy. This includes:
- The amount of coverage
- The specific industry & sectors you operate in
- Known industry risk factors
- The location of the company’s assets or office
- The number of employees
With this in mind, the average cost for a Commercial General Liability Insurance policy ranges from $15 to $45 per month. Though some companies can see a monthly premium as low as $25.
Do I Need Proof Of General Liability Insurance?
When you take out a CGI policy you can usually get the proof of insurance certificate downloaded online, you can then print it. A physical copy will be mailed to you by the provider within a week or two. You can present the downloaded version to any third parties who require it.
Do Independent Contractors Need It?
Just like any small business owner, an independent contractor can be sued and held liable for a variety of things including:
- Customer injuries
- Customer property damage
- Advertising injuries
Though an independent contractor who doesn’t have a physical location and goes out to meet clients and doesn’t need to protect any expensive equipment might not need a business owner’s policy or commercial property insurance. Though they would certainly still benefit from general liability insurance.
When Is Additional Liability Coverage Needed?
A small business with high-risk exposure or revenue often needs higher levels of general liability insurance coverage. In a case like this, the consultants at Healy Brokerage might recommend taking out a Commercial Umbrella Insurance policy. This effectively increases your maximum policy limit, meaning your insurance company can cover more expensive lawsuits.