If you own a business, you’ve likely heard about business insurance and general liability insurance. While both protect against financial risks, they serve different purposes.
- Business insurance is a broad term covering various policies that protect different aspects of a business.
- General liability insurance specifically covers claims related to bodily injury, property damage, and personal injury lawsuits.
In this guide, we’ll compare business insurance vs. general liability insurance, their costs, coverage, and which one is right for your business.
What is Business Insurance?
Business insurance is an umbrella term for different types of coverage that protect a business from financial losses.
Common Types of Business Insurance
- General Liability Insurance – Covers third-party bodily injury, property damage, and legal fees.
- Commercial Property Insurance – Covers buildings, equipment, and inventory against damage.
- Business Interruption Insurance – Compensates for lost income during disruptions.
- Workers’ Compensation Insurance – Covers medical expenses and lost wages for injured employees.
- Professional Liability Insurance – Protects against claims of negligence, errors, or malpractice.
What Business Insurance Covers
✅ Property damage from fires, theft, and vandalism
✅ Business lawsuits related to liability, negligence, or malpractice
✅ Employee injuries and lost wages
✅ Business income loss due to unforeseen events
✅ Protection against data breaches (if cyber insurance is included)
What Business Insurance Does NOT Cover
❌ Intentional illegal acts or fraud
❌ Damage due to normal wear and tear
❌ Personal property unrelated to the business
Business Insurance Cost Breakdown
| Business Size | Average Monthly Cost |
|---|---|
| Small Business | $50 – $250 |
| Medium Business | $250 – $1,000 |
| Large Business | $1,000+ |
What is General Liability Insurance?
General liability insurance is a specific policy that protects businesses from third-party claims of bodily injury, property damage, and legal disputes.
What General Liability Insurance Covers
✅ Customer slip-and-fall accidents
✅ Property damage caused by your business
✅ Advertising injury (libel, slander, copyright infringement)
✅ Legal costs related to third-party claims
What General Liability Insurance Does NOT Cover
❌ Employee injuries (covered by workers’ compensation)
❌ Damage to your business property
❌ Professional errors or negligence
❌ Cyberattacks or data breaches
General Liability Insurance Cost Breakdown
| Business Type | Average Monthly Cost |
| Freelancers & Contractors | $30 – $50 |
| Small Businesses | $40 – $80 |
| Medium to Large Businesses | $100+ |
Key Differences Between Business Insurance & General Liability
| Feature | Business Insurance | General Liability Insurance |
| Covers Property Damage | ✅ | ❌ (Only third-party damage) |
| Covers Employee Injuries | ✅ | ❌ |
| Covers Customer Injuries | ✅ | ✅ |
| Covers Business Income Loss | ✅ | ❌ |
| Covers Professional Errors | ✅ (With professional liability) | ❌ |
| Covers Legal Fees | ✅ | ✅ |
Do You Need Business Insurance, General Liability, or Both?
Who Needs Business Insurance?
- Business owners with physical locations or property.
- Companies with employees, inventory, or expensive equipment.
- Businesses wanting full financial protection.
Who Needs General Liability Insurance?
- Freelancers, contractors, and small business owners.
- Businesses that interact with customers or clients in-person.
- Companies that rent office space (often required by landlords).
Who Needs Both?
- Businesses that need comprehensive protection.
- Companies with employees, property, and liability risks.
How to Choose the Right Policy
Choosing Business Insurance
- Assess your business risks and assets.
- Decide which types of coverage you need.
- Compare policy limits and deductibles.
Choosing General Liability Insurance
- Look for coverage that matches your industry risks.
- Ensure it meets lease or client contract requirements.
- Compare quotes for affordable premiums.
FAQs & Final Thoughts
FAQs
1. Can I have both Business Insurance and General Liability Insurance?
Yes! Many businesses bundle both for comprehensive protection.
2. Is General Liability Insurance enough for my business?
It depends. If you have employees, inventory, or property, you may need broader business insurance.
3. How do I know what insurance my business needs?
Consider your industry, risks, and legal requirements to choose the right coverage.
Final Thoughts
- Business Insurance provides comprehensive protection for property, employees, and liability.
- General Liability Insurance focuses on third-party injuries, property damage, and legal claims.
- Many businesses combine both for full coverage.
Need coverage? Compare business insurance and general liability quotes today!
