Frequently asked questions about general liability insurance

General liability insurance isn't required by law. However, it provides key coverage that could protect your business from bankruptcy if a client sues. Plus, in certain situations, it is required. For example, you may need it for:

• A commercial lease
• A client contract
• A professional license

Because of the high cost of a lawsuit, general liability insurance is recommended for every small business.

General liability insurance covers the most common third-party lawsuits (lawsuits filed by someone outside your business). That includes:

• Bodily injury
• Property damage
• Advertising injury

Learn more about general liability insurance coverage.

A lawsuit can quickly escalate into thousands of dollars in legal costs. If a client or other person outside of your company sues, your policy can pay for:

• Attorney's fees
• Court costs
• Court-ordered judgments
• Settlements

Most small tech companies opt for:

• $1 million per-occurrence limit
• $2 million aggregate limit
• $500 deductible

That means the policy would pay $1 million on one incident, or $2 million on all claims while it’s active. The policyholder would need to pay $500 before getting money back on a claim. Large companies will need more coverage, as their claims could end up costing more.

Yes – and it could be required. Independent contractors face the same risks as small businesses. You may need this policy to:

• Protect against lawsuits over an injury
• Protect against lawsuits over property damage
• Fulfill the terms of a client contract

Even if a contract does not require it, it’s still recommended that independent contractors carry this policy.

A general liability policy includes protection against advertising injuries, or damage caused by a business’s advertising. That includes:

• Spoken defamation (slander)
• Written defamation (libel)
• Copyright infringement
• Violations of privacy

For example, a general liability policy would help pay for a lawsuit over a social media post that damaged a competitor. It would also provide coverage if a customer sued because you used a photo of that person without permission.

Applicants typically get proof of coverage within 24 to 48 hours. Use our online insurance application for technology businesses. (Not a tech business? We cover all professions.) To speed up the process, make sure you have basic information on hand, including:

• Number of employees
• Estimated annual revenue
• History of prior claims
• Details about business operations
• Desired coverage amount

Your quotes should arrive in your inbox as soon as you finish the application. A licensed TechInsurance agent can help answer any questions throughout the process.

It may be tempting to simply go with the least expensive quote, but there are several factors to consider. That includes:

• Premium (how much the policy costs)
• Policy limits (the amount it will pay on a claim)
• Deductible (the amount paid before you can make a claim)
• Coverage (for example, a BOP bundles two policies)

For more advice, check our article “6 things to look for in a general liability insurance quote.”

Once you’ve paid for your policy, there are two ways to obtain a certificate of liability insurance with TechInsurance:

• We can email you a certificate of insurance
• You can access your certificate of insurance by logging into your account

This form is the proof of insurance required by commercial leases, client contracts, and applications for certain professional licenses.

We specialize in small business insurance for numerous technology industries. Our insurance specialists have helped more than 350,000 businesses.

With TechInsurance, you can compare quotes from several carriers, which is an easy way to save money on business insurance. Beyond comparison shopping, a business owner looking to save money on insurance can also:

• Bundle policies for a discount
• Choose low policy limits
• Choose a high deductible
• Manage risks to avoid claims
• Communicate with your clients

Explore more ways to save money on general liability insurance.

To make a general liability claim, you will need to contact your insurance provider. They will ask for:

• A description of the incident
• Basic information about your business
• Your policy number

Your agent can help guide you through the process and answer any additional questions.

Yes. It’s easy to purchase an additional policy or increase policy limits as your business expands. Talk to your insurance agent to make adjustments or purchase new coverage.

Canceling your policy exposes your business to risk. It could also end up costing your business more in the long run. Companies that start and stop coverage are often charged more when they try to purchase insurance at a later date.