General Liability Insurance
General liability insurance is like a large, sturdy umbrella that keeps your small business safe from a storm of risks. It’s designed to shield you from the costs of common third-party claims related to things like bodily injury, property damage, and advertising injury.
It protects you by helping you pay for legal fees, medical bills, and other expenses you may be held responsible for paying.
What Is General Liability Business Insurance?
General liability insurance is a financial safety net for your business. Instead of paying for claims or a lawsuit out of your own pocket, your liability insurance covers these expenses instead.
TL;DR:
- General liability coverage acts as a financial safety net for your business
- It applies to claims involving bodily injury and property damage done to others
- It provides protection and peace of mind
- It allows you to run your daily operations without worrying about the impact of accidents, injuries, or lawsuits.
What General Liability Insurance Covers
Bodily Injury
General liability insurance includes coverage for third-party bodily injury incidents. Third-party bodily injury means physical injuries done to others, and it covers things like:
- Medical bills
- Legal fees if the injured person sues
- Settlement money you’re required to pay
For example, imagine you perform a hot stone massage for a client, but the stones end up giving them second-degree burns. Your liability insurance can pay for their medical care and/or your legal fees if they decide to sue.
Property Damage
Liability insurance also helps if you accidentally damage someone else’s stuff (not your own).
For example:
- You’re a mobile hair stylist and accidentally leave a hot iron on too long, which damages a client’s table.General liability can pay to repair or replace the table.
- The wind knocks over your welcome sign at the salon, scratching your customer’s car. Your insurance can pay for the scratch repair.
Advertising Injury
Advertising injury applies to things like copyright infringement, invasion of privacy, and defamation. Liability insurance helps pay for legal fees and settlements related to claims involving issues like these. For example:
- Another local makeup artist claims you copied their logo and sues you for copyright infringement
- Your previous salon claims you’ve been saying false, damaging things about them online, and they sue you for libel
Dig deeper into the details of general liability insurance coverage.
Why You Need General Liability Insurance
Every small business owner — no matter your industry or how big your business is — needs liability insurance to protect you from financial trouble due to accidents or claims.
Plus, most beauty and bodywork professionals are required to have general liability insurance. Some states require it for licensing purposes, and if you rent work space anywhere, the landlord will likely require it, too.
If you own a salon or spa, you want every person working under you to be protected.
Some of the most popular professions we cover include:
Understanding the Cost of General Liability Coverage
General liability insurance from BBI costs as little as $9.99/month or $96/year.
BBI’s goal is to provide you with the specific coverage you need without straining your budget. This is why we offer optional coverages like cyber liability and tool and supplies coverage, so you can customize your general liability policy to fit your needs!
How to Get Your General Liability Policy
Getting general liability business insurance with BBI is easy!
- Go to the application page
- Choose your professional service(s)
- Answer a few quick questions about your business (like your name and address)
- Opt in to any additional coverages
- Input payment information
- You’re covered!
General and Professional Liability Limits
The most your policy will pay in a 12 month policy period for bodily injury and property damage claims that you become legally obligated to pay due to your business and professional services.
$3,000,000
The maximum amount your policy will pay in a 12-month period for bodily injury and property damage claims that result from the products you use to perform your services. However, it does not cover products that are sold or distributed.
$3,000,000
The amount that your policy will pay for claims arising out of one or more of the following offenses:
-False Arrest, detention or imprisonment
-Malicious prosecution
-Wrongful Eviction or Wrongful Entry
-Oral or written publications that slander or libels a person or organization
-Oral or written publication or material that violates a person’s right of privacy
-The use of another’s advertising idea in your advertisement
Included
The maximum the insurance carrier will pay for a bodily injury or property damage claim that you become legally obligated to pay due to your business and professional services.
$2,000,000
Applies to damage by fire to premises rented to the insured and to damage regardless of cause to premises (including contents) occupied by the insured for 7 days or less.
$300,000
A general liability coverage that reimburses others, without regard to the insured’s liability, for medical or funeral expenses incurred by such persons as a result of bodily injury or death sustained by accident under the conditions specified in the policy.
Any One Person: $5,000
i. Please note these are brief definitions of coverage. Your policy may be more restrictive in its language. Refer to the actual policy for a complete description of coverages and exclusions. If you would like to see a sample policy, please contact us.
Common Questions About General Liability
Is General Liability Insurance Required by Law?
While general liability insurance might not be required by law everywhere, some states, industries, or contracts might require you to have it.
What Does General Liability Insurance Not Cover?
General liability insurance does not include coverage for:
- Intentional and criminal acts
- Employee or workplace injuries
- Damage to permanent (not mobile) business property, like a building you own
- Pollution and environmental damage
- Auto and vehicle-related accidents (covered under a commercial auto policy)
- Losses stemming from data breaches, phishing, or other cyber attacks (unless you add cyber liability coverage)
- Employment-related claims, including wrongful termination, harassment, or discrimination
What Other Types of Business Insurance Do I Need?
- Professional liability: Also known as errors and omissions (E&O) insurance, this coverage applies to mistakes, omissions, or negligence regarding your professional services or advice. BBI includes professional and general liability insurance in our base policy.
- Tools & supply coverage: Also known as “inland marine,” this coverage covers damage or theft to the tools you use for your services.
- Cyber liability: Coverage that protects your business against losses stemming from incidents like data breaches, malware, and phishing.
- Additional insureds: This covers people, organizations, or other entities that could be named alongside you in a lawsuit because of your services. Including them as an additional insured on your policy extends your coverage benefits to them.
Why is General Liability Business Insurance Important?
General liability business insurance is a crucial part of risk management. It protects your business from financial losses resulting from accidents and injuries. Even the slightest mishap can lead to significant expenses, especially when they result in legal proceedings.
Furthermore, general liability insurance does more than safeguard your business’s finances. It bolsters your credibility by showing clients and stakeholders that your business takes risk management seriously. This protects your business and fosters trust in your operations.
Partner With BBI for Your General Liability Insurance Needs
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