Commercial general liability (CGL) insurance is the foundational coverage for any business — it pays for third-party bodily injury, property damage, and personal/advertising injury claims arising from your operations, products, or premises. If a customer slips in your office, your product injures someone, or your advertising defames a competitor, CGL is the policy that responds.
Most businesses pay $400 to $2,000 per year for a standard CGL policy with $1M/$2M limits, though high-risk operations and larger companies pay more. For businesses with SBA-financed property, additional hazard insurance requirements apply alongside GL.
Key Takeaways
- What it covers: Third-party bodily injury, property damage, personal injury, advertising injury, and medical payments
- Standard limits: $1M per occurrence / $2M aggregate — higher limits via umbrella
- Cost: $400–$2,000/year for most small-to-mid businesses; scales with revenue and risk
- What it excludes: Employee injuries (workers’ comp), auto accidents (commercial auto), professional errors (E&O), cyber events
- Required by: Landlords, contracts, lenders, and licensing boards across virtually every industry
Frequently Asked Questions
What does commercial general liability insurance cover?
CGL covers bodily injury and property damage to third parties caused by your business operations, products, or premises. It also covers personal injury (libel, slander) and advertising injury. It does not cover employee injuries, vehicle accidents, professional errors, or cyber incidents — those each require separate policies.
How much does commercial GL insurance cost?
Most small-to-mid businesses pay $400–$2,000 per year for $1M/$2M limits. Cost scales with revenue, industry, number of locations, and claims history. High-risk operations (construction, manufacturing) pay more.
Disclaimer: This article is for informational purposes only and does not constitute insurance or legal advice. Consult our licensed advisors for guidance specific to your business.
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