In today's business world, the risk of a liability lawsuit is an ever-present reality for SMEs. A simple accident can quickly turn into a legal and financial nightmare. This is where general liability insurance comes in.
What Does General Liability Insurance Cover?
General liability insurance protects your business against claims for:
- Bodily Injury: When a third party is injured on your premises
- Property Damage: When your business damages a third party's property
- Personal and Advertising Injury: Non-physical offenses like defamation
Coverage Limits and Costs
In 2025, common practice for SMEs is to choose limits of $1 million per occurrence and $2 million aggregate. The average monthly cost is approximately $42.
Factors Affecting Premiums
- Your industry and risk level
- Business size and location
- Claims history
- Coverage limits chosen
An important trend affecting costs in 2025 is social inflation - the increase in claim costs due to larger jury verdicts and increased litigation.