General Liability Insurance for California Businesses

Who may need this coverage

• Businesses with a physical premises customers or vendors visit
• Contractors and trades whose work could damage a client's property
• Retailers, restaurants, and service providers interacting with the public
• Companies required to show a certificate of insurance to a landlord or client

What it may cover

Coverage depends on policy wording, exclusions, limits, and underwriting. The following are commonly addressed, subject to the policy terms:

• Bodily injury to a customer or visitor at your premises
• Property damage you cause to a client's or neighbor's property
• Personal and advertising injury, such as libel, slander, or copyright infringement in your advertising
• Medical payments for minor injuries to non-employees on your premises, subject to limits
• Legal defense costs for covered claims, typically in addition to the policy limit

Common exclusions and limitations

• Damage to your own property or your own work (your products/work)
• Professional errors or negligent advice — that is professional liability (E&O)
• Employees' on-the-job injuries — that is workers' compensation
• Auto liability — covered under a commercial auto policy
• Pollution, intentional acts, and many employee-related claims

Relevant optional endorsements

• Additional insured endorsements for landlords or project owners
• Waiver of subrogation
• Primary and non-contributory wording
• Contractual liability coverage for assumed liabilities in written agreements

Factors that may affect pricing

• Industry class and perceived hazard level
• Annual gross receipts or payroll used for rating
• Premises square footage and customer traffic
• Selected per-occurrence and aggregate limits
• Claims history and years in business

Information typically needed to request a quote

• Business name and a description of operations
• Industry classification and annual receipts or payroll
• Business address and premises details
• Current limits and any contractual requirements

A realistic example

Situation: A retail customer trips over a loose mat near your entrance and fractures a wrist, then seeks reimbursement for medical costs and lost wages.

How coverage may respond: Your general liability policy can respond to the bodily-injury claim and cover defense costs, up to your selected limits and subject to the policy terms.