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May 5, 2026
Commercial general liability covers bodily injury, property damage, and advertising injury claims — and pays your legal defense even when you are not at fault. Most client contracts and leases require a $1M limit.
A client slips on your job site. A customer claims your product damaged their property. Someone alleges your advertising harmed their business. These situations happen to businesses of every size — and without general liability insurance, a single lawsuit can threaten everything you've built. General liability is not a luxury. It is the foundation of every serious business insurance program.
Dragon Insurance Services works with small businesses and growing companies across Pennsylvania, Texas, Virginia, Maryland, Ohio, Tennessee, and Kentucky to find the right general liability coverage at the most competitive price. Explore our general liability insurance coverage options or read on for a full guide.
A commercial general liability (CGL) policy protects your business against third-party claims in three primary categories:
1. Bodily Injury
Covers medical expenses, lost wages, pain and suffering, and legal costs if a third party (a customer, client, or bystander — not your employee) is physically injured due to your business operations. If a customer falls in your store, slips at a job site you manage, or is injured by a product you sell, your GL policy responds.
2. Property Damage
Covers damage your business operations cause to someone else's property. If your employee breaks a client's window, your equipment damages a neighboring property, or a fire you accidentally start destroys a client's inventory — GL pays the repair or replacement costs and any associated legal expenses.
3. Personal and Advertising Injury
Covers claims of libel, slander, copyright infringement, false advertising, invasion of privacy, and wrongful eviction — even when the alleged harm is not physical. If a competitor claims your ad campaign defamed them, or a former tenant alleges wrongful eviction, this coverage responds.
GL policies also include coverage for legal defense costs — even when your business is not at fault. Defense costs can run into tens of thousands of dollars before a case is resolved; having GL means those costs do not come out of your operating funds.
General liability policies have two key limits:
Per-Occurrence Limit
The maximum your policy will pay for any single covered claim. The most common starting point is $1,000,000 per occurrence — the minimum required by most client contracts, vendor agreements, and commercial leases.
General Aggregate Limit
The total maximum the policy will pay for all covered claims during the policy period. A $1M/$2M policy means $1M per occurrence with a $2M total annual cap. For businesses with high claims frequency, consider higher aggregate limits.
GL premiums vary widely based on your industry, revenue, number of employees, and location. General annual cost estimates for a $1M/$2M policy:
| Business Type | Typical Annual Estimate |
|---|---|
| Office-based / professional services | ~$400 – $900/year |
| Retail stores | ~$600 – $1,500/year |
| Restaurants and food service | ~$1,000 – $3,000/year |
| General contractors and tradespeople | ~$1,500 – $5,000+/year |
| Janitorial, cleaning, landscaping | ~$500 – $1,500/year |
Estimates only. Actual premiums depend on revenue, number of employees, location, claims history, industry class, and carrier. Contact us for a personalized quote.
In most industries, general liability insurance is not just smart practice — it is a contractual requirement. Here is where you commonly encounter mandatory GL requirements:
Many small businesses purchase GL as part of a Business Owner's Policy (BOP), which bundles general liability with commercial property coverage — typically at a lower combined rate than buying them separately. A BOP is often the right starting point for offices, retail stores, service businesses, and contractors with commercial property to protect.
If your business has minimal physical property (home-based or service-only), a standalone GL policy may be all you need to start. We'll help you figure out which approach makes sense for your specific situation.
Tell us what your business does, how many employees you have, and your estimated annual revenue. We can usually get a quote started the same day.
Visit us: 1525 Cedar Cliff Dr STE 202, Camp Hill, PA 17011
Serving businesses across PA, TX, VA, MD, OH, TN, and KY.
Dragon Insurance Services LLC is a licensed independent insurance agency. General liability requirements vary by contract, industry, and state. No state in our service area universally mandates commercial general liability for all businesses, though specific industries and licensure requirements may impose mandatory minimums. Coverage availability, terms, and rates vary by carrier, industry, revenue, and individual business profile. Cost estimates shown are general market examples and do not constitute a quote or guarantee of specific pricing. Contact us for a personalized quote.
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