Okay so — general liability insurance. At first, it felt like just another thing on my long, boring list of “things to deal with” as a business owner, but lemme tell ya, it’s one of those sneaky important things that you don’t realize you need… until you really do.
Wait, What Even Is It?
So basically, general liability insurance is this thing that covers your butt when stuff goes sideways. Like if someone slips on your floor or if, say, your assistant knocks over a $5,000 MacBook at a client’s office — you’re not paying for that outta pocket. The insurance steps in and, y’know, handles it. More or less.
Not gonna lie, I didn’t even know it was a thing until some dude in a suit brought it up during a contract negotiation. Said he wouldn’t even sign without proof of coverage. Wild.
What All It Covers? Kinda a Lot.
It ain’t just for big companies, btw. Even if you’re a one-person show, this thing’s got your back.
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People gettin’ hurt: Customer face-plants in your store? Boom. Insurance.
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Stuff gets broken: Your team spills paint all over a client’s custom rug? GLI handles the mess.
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Random lawsuit energy: Someone accuses your ad of stealing their idea? Weird flex, but okay — your insurance might fight it for you.
It’s not magic, but it’s close. Legal fees, medical bills, settlements… yeah, it’s not cheap, but lawsuits are way pricier.
Also, Stuff It Doesn’t Do
Now don’t get me wrong — this ain’t no super shield. Doesn’t do everything.
Like if your employee hurts themselves on the job, that’s worker’s comp territory. Not GLI.
Or if you mess up the service you provide (consulting mistake, bad advice, missed deadlines)? That’s “professional liability,” and that’s its own thing entirely.
Driving your work truck into someone’s fence? Different insurance altogether.
Just ‘cause you’ve got this doesn’t mean you’re invincible. I learned that the annoying way.
Do I Even Need This? Yeah, Probably.
Long answer short: Yes. Short answer shorter: Yes.
I used to freelance from home. Thought I didn’t need it. Then one day I was setting up gear at a client’s place, tripped, smashed a light, and wrecked their hardwood floor. $3,000 in damages later, I bought a policy real quick.
Whether you’re doing events, web design, baking cupcakes, or mowing lawns, doesn’t matter. If you interact with people (or their stuff), you’re liable.
Even landlords will ask for proof before renting a space sometimes. It’s like insurance has become part of the handshake now.
The Money Talk: How Much We Talkin’?
So cost-wise, it’s kind of all over the place.
I paid around $42/month. Some folks pay more, some less. Contractors might cough up $100+ monthly, while someone just running a Shopify dropshipping gig might only pay $25. Depends on what you do, where you live, how risky your biz is, and maybe how often Mercury’s in retrograde. (Kidding. Mostly.)
If you’ve had claims in the past? That price gonna climb.
Pro tip? Bundle it with other stuff — like business auto or cyber insurance. Sometimes you get decent discounts.
What I Wish Someone Told Me
One thing? Read the dang fine print. For real. I skimmed mine and missed a clause that didn’t cover subcontractors. Found out the hard way when I had to eat the cost of one dude’s mistake. Ouch.
Also? Don’t just grab the first policy Google throws at you. Compare. Ask a broker. Call your friend who’s obsessed with spreadsheets. Whatever works.