Starting a business is exciting, but it also comes with risks. If you meet with clients, rent office space, or sell products, one accident or lawsuit could cost you a lot of money. That’s where general liability insurance helps.
This guide explains what general liability covers, why you need it, what it doesn’t cover, and how to find affordable protection for your new business.
What General Liability Insurance Covers
General liability insurance protects your business from common problems that can happen with other people (not your employees). Here’s what it usually includes:
Why Startups Need General Liability Insurance
Some startups skip insurance at first to save money, but general liability is one of the most important types of protection. Here’s why:
What It Doesn’t Cover
General liability insurance is helpful, but it doesn’t cover everything. You may need other types of insurance too:
Not Covered | What You Need Instead |
---|---|
Employee injuries | Workers’ Compensation Insurance |
Mistakes or bad advice | Errors & Omissions (E&O) Insurance |
Damage to your own property | Commercial Property Insurance |
Car accidents | Commercial Auto Insurance |
Cyberattacks or data leaks | Cyber Liability Insurance |
How to Get Affordable Insurance for Your Startup
You don’t have to spend a lot to protect your business. Here are some tips:
Final Thoughts
Even if your startup is small, one accident or lawsuit can cause big problems. General liability insurance protects you from the most common and expensive risks — and it’s often cheaper than you think.