General Liability as a Business Owner: What You Need to Know

If there’s one thing businesses can’t live without, it’s insurance. After all, an entrepreneurial venture isn’t without risk—be it accidents in the workplace or mistakes or omissions that result in lawsuits, and every entrepreneur needs to protect their legacy. Of course, this doesn’t necessarily mean that every brand or company will require the same coverage. For example, web development firms don’t require liquor liability policies in the same way that bars have no use for professional liability. 

With that in mind, there is a type of insurance that most businesses will need, and that’s general liability. In this post, we’ll discuss everything you need to know about this policy. Continue reading if you want to learn more.


Businesses get sued more often than you think, which can happen for different reasons. For starters, the most common are slip-and-fall accidents. Some professions that require work on-site in businesses and people’s homes, like contractors, are also at risk for property damage lawsuits. It only takes a single, careless moment to break furniture, fixtures, and other items accidentally. For this reason, having general contractor insurance is essential.

Having general liability coverage may offer you some coverage for the abovementioned concerns. In addition, the policy may also provide protection from lawsuits like slander, defamation, and libel since the insurance provider usually aids in the costs associated with legal services, settlements, or any other judgments imposed against the business. 

General liability—is it legally required?

Whether or not having general liability is legally required is a tricky question. This is because state governments don’t usually need low-risk entrepreneurial ventures to have it. For instance, freelance writers aren’t exposed to many risks, so these types of professionals can skip the coverage with confidence. The same goes for many small businesses. But because anyone can be sued, it’s usually a good idea to invest in its coverage.

On the other hand, local and state governments require higher-risk ventures to be insured. One good example is a general contractor. As a result, most need to prove that they have general liability before they can secure a license to operate. 

Other entities may require it

Even if you can get a pass on general liability from local or state governments, it doesn’t necessarily mean that you won’t need the coverage to operate. When you get right down to it, other entities may require the policy. For instance, if you require office space, some landowners may request proof that you have the insurance coverage before they let you sign your lease. Therefore, you must have it.


General liability is essential in business; there’s no getting around this fact. Regardless of your industry or trade, having this type of coverage will ensure that you’re financially protected against accidents and problems while enabling you to operate legally. You’ll also have a better chance of getting more sales and revenue since most entities will only do business with insured ones.

My Name is Hazel, I am Content Manager @freeholidaywifi. In my spare time i like to write about Tech, Software's & more. Other then that i love football & travelling new places.