General Liability Insurance: Why You’re Being Asked for It (and Why It Matters)
Starting a new business? Signing a lease for a commercial space? Landing your first big client? Chances are, someone’s asked you for proof of general liability insurance—often called a certificate of insurance (COI).
But general liability (GL) insurance isn’t just a box to check for contracts or leases—it’s one of the most important protections any business can have.
What general liability insurance covers
At its core, general liability insurance helps protect your business from the financial fallout of certain third-party claims. Here’s what it typically covers:
Property damage: Covers damage to someone else’s property caused by your business, including rented or leased spaces.
Bodily injury: Protects your business if a customer, vendor, or visitor is injured due to your operations or on your premises.
Medical payments: Pays for immediate medical expenses if someone is injured on your property or as a result of your work.
Defense costs: Covers your legal defense—even if the lawsuit is groundless.
Personal and advertising injury: Protects against claims like libel, slander, or copyright infringement in your marketing materials.
Note: professional services require separate coverage, such as professional liability (E&O) insurance.
Why general liability insurance is so important
Even one accident or claim can be costly. Whether it’s a slip-and-fall at your shop, a client’s damaged laptop, or a false claim of defamation—legal fees, settlements, and repairs add up fast.
GL insurance helps cover those costs so your business doesn’t have to. That’s why landlords, clients, and vendors often require it before signing a lease, contract, or partnership agreement—they want reassurance that any risks associated with your work are properly insured.
Specialized forms of liability coverage
Depending on what you do, you may need additional or specialized liability coverage. Here are a few common examples:
Contractors’ liability: For trades like plumbing, roofing, or electrical work—covering risks unique to the job site.
Professional liability (E&O): For service-based professionals like consultants, designers, or accountants. Covers negligence or failure to deliver expected services.
Products liability: For manufacturers, distributors, and retailers—protects against claims that a product you made or sold caused harm or injury.
Protect your business
Even small businesses or startups need protection. One unexpected lawsuit could threaten your operations—or even your livelihood.
At Wang Insurance, we help businesses of all sizes secure the right general liability coverage to stay compliant, protected, and confident.
Ready to get covered? Contact us today to learn more or request a quote tailored to your business.
