General liability insurance (GLI), also called business liability insurance or commercial general liability insurance, helps protect businesses from property damage claims and bodily injury claims. These unexpected accidents can happen in the course of business operations, and without coverage, you might end up paying the financial cost of damages out of your pocket.

Why do you need general liability insurance?
As a small business entrepreneur and owner, you will be legally and morally responsible if another person gets hurt or their property is damaged at your business premises or because of something done by you or your employees. You should seriously consider general liability insurance coverage if you or your employees:

• Have access to customer’s property
  If a customer’s property (his vehicle, goods, or equipment) is damaged at your location or job site, this insurance will help you cover the cost of repairs or replacement. It will be a big relief to you to know that the cost is taken care of.
• Interact with clients
  If you visit your client or visit your place of operation, there is always a chance of accidents occurring. General liability insurance will take care of the cost of medical treatment in the event of any such unfortunate happening.
• Use third-party locations for business activities
  If someone, besides you or your employee, is injured on a job site that is within your purview, you are responsible for treating the injured person. Having general liability insurance will take care of the cost of the treatment.
• Mandatory for consideration for project enrollment
  Certain contracts have a clause whereby liability insurance is mandatory. General liability insurance could be a precursor to enrollment for the contract.
• Coverage of advertising – Accidental usage of words under copyright or trademark can land you and your company in trouble. General liability insurance covers such claims too.
• Damage to rented property – Any property rented by you is also covered under general liability insurance.

Cost of general liability insurance
The cost of general liability insurance varies, and it depends on factors like:

• Location
• Size of the business
• Years of experience
• Insurance claims history
• Coverage limit
• Deductibles
• Condition of the building

Companies in higher-risk industries generally pay a higher cost compared to lower-risk businesses. For example, construction companies are charged a higher rate of premium than consulting companies. The best way to find out the cost would be to get a quote. Tailoring the policy to fit your specific needs is an option.

General liability insurance is not mandatory by law, but it’s still a good idea to have this coverage. If a customer sues your business for a claim and is not covered for that specific risk you are sued for, it can put your business’ finances and assets at risk. Understand your state insurance laws before you take the policy. You can get an online quote from an A-rated general liability insurer with an online application.

Top-rated general liability insurance companies of 2021
The best insurance companies for general liability insurance are:

• State Farm
  The best overall small business insurance company name can be attributed to state farm as it offers multiple types of coverage through a nationwide network of agents. State Farm agents are business owners themselves, making it easy for them to understand their needs.
• Hiscox
  This insurance company is the best for independent contractors as they have products designed specifically for independent contractors and freelancers.
• Nationwide
  Nationwide’s policies are simple, straightforward insurance solutions ideal for businesses with high-risk general liability needs.
• The Hartford
  Hartford is the best in worker’s compensation insurance. They have a pay-as-you-go plan which reduces the risk of underpaying premiums because costs are based on the actual payroll instead of the projections.
• Liberty Mutual
  Liberty Mutual offers best business owners policies. They combine multiple coverages into a single policy, protecting against various liabilities.