What Does General Liability Insurance Cover, and Do You Need It?

General Liability Insurance for Business Owners

General liability insurance is one of the most basic, essential types of business coverage. It protects your company from the kinds of claims that can happen to any business at any time.

If you own or lease a location, interact with clients, or host visitors, you’re exposed to legal risk. General liability helps cover that risk.

What Is General Liability Insurance?

General liability insurance covers third-party injury or property damage that happens because of your business operations.

It pays for:

  • Medical bills if someone gets hurt
  • Property damage caused by your team
  • Legal fees if you’re sued for negligence
  • Settlements or court judgments

This does not cover employee injuries (that’s workers’ comp) or professional advice (that’s E&O insurance).

Real-World Examples of General Liability Claims

  • A customer slips and falls in your lobby
  • A vendor trips on uneven pavement outside your building
  • You damage a client’s furniture during an onsite consultation
  • A contractor files a claim for injury while visiting your office

In each case, general liability is the policy that responds.

Who Needs General Liability Insurance?

Almost every business needs general liability insurance.

You need it if you:

  • Own or lease a business location
  • Interact with the public
  • Host clients or partners onsite
  • Sign contracts with vendors or landlords
  • Run events or pop-ups
  • Work on someone else’s property

Even if you work from home, many clients and landlords require proof of general liability coverage.

What Happens If You Don’t Have General Liability Insurance?

Without general liability, you’re responsible for:

  • Paying medical bills if someone is hurt
  • Replacing damaged property
  • Hiring a lawyer to defend a lawsuit
  • Covering settlements or court-ordered judgments

For many small businesses, this is a financial risk that can’t be absorbed.

Local Considerations in the Tri-State Area

  • NYC: Commercial leases often include strict general liability requirements with minimum coverage levels
  • Westchester County: Local landlords and event venues may require additional insured status and COIs
  • Fairfield County: Professional firms and retail shops need to show proof of liability coverage to open doors or bid on work

Do You Still Need General Liability Insurance If You Own Your Space?

Yes, in most cases.

Owning your property doesn’t remove your legal responsibility. If someone is hurt onsite, your business is still liable.

In fact, general liability helps protect both your operations and your assets.

How Much General Liability Insurance is Typically Required?

Most landlords and partners require at least:

  • $1 million per occurrence
  • $2 million aggregate coverage
  • Proof of insurance in the form of a COI

Depending on your industry or client base, you may need more.

How Refine Risk Helps Business Owners

We help business owners across NYC, Westchester, and Fairfield:

  • Understand what general liability really covers
  • Choose limits that match their exposure
  • Prepare proper COIs for leases and contracts
  • Add endorsements like waiver of subrogation or additional insureds when needed

General liability insurance is one of the simplest ways to protect your business. It’s often required but more importantly, it’s smart.

Refine Risk helps you get this right from the start.

Want to compare your options?

Click the button below to head to our quotes page where you can enter some basic information to have our team help with your insurance!