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.
Commercial Insurance Review
Hotaling Insurance Services structures comprehensive insurance for mid-market and enterprise businesses across Houston, Miami, and NYC.
Schedule ConsultationAbout the cost figures and examples in this article: Any premium ranges, cost figures, or pricing factors discussed here are general market estimates drawn from publicly available industry data and are provided for educational context only. They are not quotes, offers, or guarantees of cost, and they do not reflect the price Hotaling Insurance Services will or can offer for any specific policy. Actual premiums are determined solely by the insurance carrier based on your individual risk profile, coverage selections, claims history, location, and other underwriting factors, and they vary widely from the general ranges described above. Any client scenarios are anonymized, illustrative composites created for educational purposes; they do not depict actual named clients and should not be relied upon as a prediction of results. Nothing in this article constitutes financial, legal, tax, or insurance advice. For pricing and coverage specific to your organization, please request a consultation with our licensed advisors.