Do I need general liability insurance if I work from home?

Possibly, yes. If clients visit your home office, if you or your employees visit client sites, or if contracts require it, CGL is still appropriate. A home-based business endorsement to your homeowners policy covers some business property risk but does not provide the liability coverage a standalone CGL policy provides.

What is an additional insured on a general liability policy?

An additional insured is a person or organization (often a client or landlord) that your CGL policy extends liability protection to. Many contracts require you to add the client as an additional insured before work begins.

What does general liability insurance cover?

Commercial general liability (CGL) insurance covers three core risks: bodily injury to a third party (a customer slips and falls at your business), property damage you cause to someone else's property, and personal and advertising injury (libel, slander, copyright infringement in your ads). It does not cover your own employees' injuries (that's workers' comp) or your own property damage.

Commercial general liability (CGL) is the foundational business insurance policy that most companies purchase first. The Insurance Information Institute describes it as covering claims arising from the business's operations, products, and premises. The SBA recommends CGL as one of the first policies any small business should obtain.

What general liability covers

Bodily injury (third-party): If a customer, vendor, or visitor is injured at your business premises or as a result of your operations, CGL covers their medical expenses and legal costs if they sue you. Example: a customer trips over equipment at your shop.
Property damage (third-party): If you or your employees damage someone else's property during your business operations, CGL covers the repair or replacement cost and any resulting lawsuit. Example: a contractor accidentally breaks a client's window.
Personal and advertising injury: Covers claims of libel, slander, defamation, copyright infringement in advertising, or invasion of privacy arising from your business's advertising or communications.
Legal defense costs: CGL typically pays your legal defense costs — attorney fees, court costs — even for groundless lawsuits, which are often as expensive to defend as valid claims.
Medical payments (no-fault): CGL often includes a small no-fault medical payments coverage (typically $5,000–$10,000) that pays minor injuries to visitors without a lawsuit, helping prevent small incidents from becoming litigation.

What general liability does NOT cover

Your employees' injuries: Work-related injuries to your employees are covered by workers' compensation, not CGL.
Your own property: Damage to your own business equipment, inventory, or building requires commercial property insurance.
Professional errors: Mistakes in professional services (bad advice, missed deadline, design errors) require professional liability (errors and omissions) insurance.
Auto accidents: Accidents involving your business vehicles require commercial auto insurance, not CGL.
Intentional acts: CGL excludes coverage for damages caused intentionally by you or your employees.
Pollution: Most standard CGL policies exclude pollution incidents, which require a separate pollution liability policy.

Understanding CGL limits: per-occurrence vs. aggregate

A standard CGL policy has two limits: the per-occurrence limit is the maximum the insurer pays for a single incident; the aggregate limit is the total the insurer pays across all claims in the policy year. A $1M/$2M policy pays up to $1 million per incident and up to $2 million total in a policy year. Many contracts — commercial leases, vendor agreements, and client contracts — specify minimum CGL limits your business must carry.

CGL alone may not be enough — assess your full risk profile

General liability is a foundation, not a complete program. Professional service firms need E&O; businesses with employees need workers' comp; businesses with vehicles need commercial auto. ClearValue Lending is not a licensed insurance broker or agent. A licensed commercial insurance agent can assess your specific risk profile and recommend a complete coverage program.

Sources

Commercial general liability insurance covers bodily injury, property damage, and personal and advertising injury caused to third parties by the insured business's operations, products, or premises. — Insurance Information Institute
The SBA recommends small businesses obtain general liability insurance as part of their baseline coverage before opening for business or signing client contracts. — U.S. Small Business Administration

Key takeaways

CGL covers third-party bodily injury, property damage, and advertising injury — the three core liability risks of running a business.
It does not cover employee injuries (workers' comp), your own property (commercial property), or professional mistakes (E&O).
Policy limits are structured as per-occurrence and annual aggregate — know both numbers before signing contracts that require minimum limits.
Defense costs are typically covered by CGL even for claims that are ultimately groundless.
ClearValue Lending is not a licensed insurance broker or agent. This is editorial content only.

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