That’s absolutely right! General liability insurance, also known as business liability insurance, commercial general liability insurance, or comprehensive general liability (CGL), is a type of insurance that helps protect small businesses from financial losses due to claims of bodily injury or property damage to others. This type of insurance can help mitigate the financial risk associated with unexpected accidents, errors, or negligence that may occur in the course of doing business.

By having general liability insurance, business owners can rest assured that they are protected against claims such as:

• Injuries or illnesses caused by their products or services
• Damage to property caused by their business operations
• Bodily harm caused by a slip-and-fall accident on the business premises

Without general liability insurance, businesses may be held financially responsible for these claims, which can lead to significant financial losses. With GLI, businesses can transfer this risk to the insurance provider, which will help cover the costs of defending against claims and paying any damages awarded.

It’s worth noting that general liability insurance is often mandatory for certain types of businesses, such as those in the construction industry, healthcare industry, or those that handle hazardous materials. Even if it’s not mandatory, having GLI is still a good idea for any small business owner who wants to protect their assets and reputation.