General Liability Insurance

Minimize Out-of-pocket Costs to Resolve Lawsuits Against Your Company

General liability insurance (GLI), also known as business liability insurance, protects your business from claims related to your operations. It protects you from paying out-of-pocket to cover medical bills, legal fees, repair costs, and other liabilities that arise as a result of your day-to-day business activities.

Liability Extensive Coverage

This policy offers extensive coverage, including:

  • Third-party bodily injury (sustained by clients or employees)
  • Third-party property damage (caused by you or your employees)
  • Reputational harm (such as slander and libel)
  • Advertising injury (such as copyright infringement)
Liability Exclusion


Although general liability insurance provides extensive coverage, it has a few exclusions. This policy will not cover damages caused by your negligence. It also will not cover claims, that should be covered by other business insurance policies.

Below are some of the claims that a general liability insurance policy will not cover:

  • Work-related injuries or illnesses (covered by workers’ compensation policy)
  • Damage to business property (covered by commercial property insurance)
  • Mistakes made while providing professional services (covered by E&O insurance)
  • Damage to business-owned vehicles (covered by commercial auto insurance)
  • Loss of tools and equipment (covered by tools & equipment insurance)

Who Needs General Liability Insurance?

Most businesses stand to benefit from general liability insurance. If your business falls into any of the following categories, you should consider acquiring this type of coverage.

  • Your business is open to the public or vendors
  • You advertise or create marketing material for your business
  • You have any personal or business social media accounts
  • You conduct business activities in third-party locations
  • You need insurance coverage before being considered for work contracts


General liability insurance is not compulsorily required by law. However, failing to carry this coverage will cause you to be solely responsible for all the claims that are filed against your business. This policy will help you cover the expenses related to third-party injuries or property damages without depleting your business resources.

Yes, this policy covers property damages, provided the property in question does not belong to you. For instance, if while working on a client’s property you drop a piece of equipment and damage their floor, general liability insurance will cover the expenses related to replacing/repairing the damage.

There is no direct answer to this question, as the extent of coverage required will depend on your unique business needs. A few factors that can be used to determine the ideal amount of coverage required for your business are:

  • Location of your business
  • Type of business operations
  • Level of risks that your business is exposed to
  • Number of employees or subcontractors who are working for you

General liability insurance protects your business from claims related to third-party injuries and property damages by covering any medical expenses, repair costs, or any other expenses that arise due to such claims. Some of the ways in which having general liability insurance will benefit your business are as follows:

  • Helps you attract better opportunities
    This policy gives you a competitive advantage over other businesses by letting your prospective clients know that they are covered against potential losses/damages while dealing with your business.
  • Allows you to focus on the important aspects of your business
    When you know that you are covered against unforeseen liabilities related to third parties, you can concentrate better on growing your business with greater confidence and peace of mind.
  • Ensures legal compliance, where needed
    Some states require businesses to carry general liability insurance before letting them operate legally.

At Clausen Insurance Services, we have over 30 years of experience serving business owners and entrepreneurs across the nation. We offer innovative solutions custom-tailored to meet our client’s unique coverage needs. Contact us today to get started on your personalized general liability insurance policy.

Contact us today to get started!