What Does GL Mean in Insurance?

What is General Liability Insurance?

You can get general liability insurance for a commercial property owner or general liability insurance for an employee’s liability coverage.

What are the Types of General Liability Insurance?

One of the most popular forms of business general liability insurance is policies that cover liability claims for medical expenses from injuries.

The insurance industry offers many different kinds of a medical expense coverage. Medical-expense insurance policies don’t cover your liability for property damage claims, however.

To be able to cover medical expenses if someone gets hurt at your company, you need to have commercial general liability insurance.

Who Needs General Liability Insurance?

It can be worth it to take out general liability insurance for your small business even if you have a good level of coverage for workers’ compensation insurance. Even though small business owners’ compensation isn’t guaranteed in worker’s compensation, the coverage will keep you from falling behind on bills if an injury occurs.

In the event of a lawsuit, you may want to consider general liability insurance, as well. This type of insurance is often a backup in case your primary workers’ comp policy fails you.

A company that doesn’t have enough workers’ compensation insurance isn’t protected against lawsuits and workers’ compensation limits won’t pay for your recovery.

How Does the Policy Work?

The policy is typically drawn up as a 30-year insurance contract.

Reasonable Severity Period: This is your money’s first real test in terms of policy design. What percentage of costs do you want to cover, and how many claims can you afford to pay before you have to start paying for everything out of pocket? The more you plan to spend, the more you have to set aside to pay for claims (though the deductible is higher each year). Claims are paid out over a period of time (usually 3 to 5 years) so you have some flexibility on the length of time you have to pay claims.

When Should You Purchase General Liability Insurance?

General liability insurance is usually the last thing you consider when you start a new business or move into a new industry. But you should definitely consider it. It could cover the most catastrophic things that could happen to your business. And it could save you a lot of money in the future.

In fact, you may think twice about purchasing insurance for your business if you think the risks are small. However, that could backfire and leave you and your family out of pocket if someone who didn’t have the insurance were to get hurt at your business.

But don’t just take our word for it. Here are the top reasons why you should purchase business liability insurance, whether you’re thinking about starting a new company or are already in the business.

What Happens if You Don’t Have It?

Businesses that have no general liability insurance could get sued by anyone with an insurance claim against them. Companies that don’t have medical and property coverage could be sued for medical bills, including those that medical facilities take on themselves. What’s more, commercial general liability insurance is a basic necessity for all business owners, so if you don’t have it, you could be liable for the personal possessions of everyone in your company, not just the ones who work for you.

How Much Do I Need?

You can usually purchase this type of insurance for less than $1,000 per person, and you don’t need to pay for it all at once. Many business owners buy small policies, but some do this every year.


If you have business insurance for your business, you probably already have some liability coverage for your employees as well. If you want to get more coverage, you may need to call in a broker. As you know, brokers can be expensive. You can also get more value if you work with a broker to ensure you’re getting the coverage you need for the right price.

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