Get Legal & Insured
General Liability Insurance: What It Covers and What It Costs
Short answer
General liability (GL) covers third-party bodily injury, property damage, and personal/advertising injury caused by your business. Most trades need $1M per occurrence / $2M aggregate. Cost runs $400–$1,200/year for solo operators. It's required for most commercial customers and city licenses.
An LLC shields personal assets from business lawsuits, but only insurance pays the actual judgment. You need both. GL is the foundation policy every service business should carry from day one.
What GL covers (and doesn't)
| Covered | NOT Covered |
|---|---|
| Customer trips over your hose, breaks an arm | Your own employee getting hurt (need workers comp) |
| You damage a customer's wall while working | Damage to your own tools (need inland marine) |
| Defamation in your advertising | Mistakes in your professional advice (need E&O) |
| Slip-and-fall at a job site | Auto accidents while working (need commercial auto) |
How to buy it
- Get quotes from at least 3 carriers — direct (Next, Hiscox, Thimble), broker, or your trade association.
- Ask for $1M per occurrence / $2M aggregate — the standard ask for commercial work.
- Add additional insured certificates for any commercial customer who requests one.
- Renew annually. Premium drops with claim-free years.
Frequently asked questions
Do I need it if I'm just a solo handyman?
If you ever enter someone's property, yes. A single dropped wrench through a marble countertop can be a $15,000 claim — more than 20 years of premiums.
Invoice from day one.
Glo Invoice is free for 14 days for new owners — your first invoice goes out in under 60 seconds.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.