General liability insurance is the foundation of any business insurance program. This guide covers what it covers, what it doesn't, and how much you should expect to pay in Florida.
What Does General Liability Insurance Cover?
General liability (GL) insurance protects your business from claims of bodily injury, property damage, and personal or advertising injury caused by your operations, products, or completed work. It is the most fundamental business insurance policy and is typically the first coverage a new business should obtain.
A standard GL policy covers three primary areas:
Bodily Injury and Property Damage (BI/PD): If a customer slips and falls at your business, or if your work damages a client's property, your GL policy pays for their medical bills, property repair costs, and any legal defense costs if they sue you.
Personal and Advertising Injury: This covers claims of libel, slander, copyright infringement, or false advertising. If a competitor claims your marketing materials defamed their business, your GL policy would respond.
Products and Completed Operations: If a product you sold or work you completed causes injury or damage after the fact, this coverage responds. For contractors, this is particularly important — it covers claims that arise after a project is finished.
What General Liability Does NOT Cover
Understanding the exclusions in a GL policy is just as important as understanding what it covers. Common exclusions include:
- Your own employees' injuries: GL does not cover injuries to your own workers — that's what workers' compensation is for.
- Professional errors: If you give bad advice or make a professional mistake, GL won't cover the resulting claim. You need professional liability (E&O) insurance for that.
- Your own property: GL covers damage to others' property, not your own equipment or inventory. Commercial property insurance covers your assets.
- Auto accidents: Accidents involving business vehicles are covered by commercial auto insurance, not GL.
- Intentional acts: Deliberate harm or fraud is excluded from all GL policies.
- Pollution: Most GL policies exclude pollution-related claims. Contractors who work with chemicals, fuel, or hazardous materials may need a pollution liability endorsement.
How Much Does General Liability Cost in Florida?
General liability premiums in Florida vary widely based on your industry, revenue, number of employees, claims history, and the limits you choose. As a rough guide:
| Business Type | Typical Annual Premium Range |
|---|---|
| Retail store (small) | $500 – $1,500 |
| Restaurant | $1,000 – $3,000 |
| Cleaning service | $800 – $2,000 |
| Landscaping contractor | $1,500 – $4,000 |
| General contractor | $3,000 – $15,000+ |
| Roofing contractor | $5,000 – $25,000+ |
| Plumber / Electrician | $2,000 – $8,000 |
These are estimates only. Your actual premium will depend on your specific operations, revenue, and claims history. The best way to know your cost is to get quotes from multiple carriers through an independent agent.
Choosing the Right Coverage Limits
GL policies are typically written with two limits: a per-occurrence limit (the maximum paid for any single claim) and an aggregate limit (the maximum paid across all claims in a policy year). The most common limit structure is $1 million per occurrence / $2 million aggregate.
Whether those limits are adequate depends on your business. A small cleaning service may be well-protected with $1M/$2M limits. A general contractor working on multi-million-dollar commercial projects should consider $2M/$4M or higher — and may need an umbrella policy on top of that to satisfy contract requirements.
Many commercial leases, government contracts, and general contractor agreements specify minimum GL limits. Review your contracts carefully before choosing your limits, and err on the side of higher coverage — the premium difference between $1M and $2M per-occurrence limits is often surprisingly small.
Additional Insureds and Certificates of Insurance
When you work for a general contractor, property owner, or municipality, they will almost always require you to add them as an additional insured on your GL policy. An additional insured endorsement extends your coverage to protect them from claims arising out of your work.
You'll also need to provide a Certificate of Insurance (COI) as proof of coverage. A COI is a one-page summary of your policy — it shows your carrier, policy number, coverage types, limits, and effective dates. It does not itself create coverage; it simply documents what your policy provides.
As an independent agency, Bright Coast Insurance can issue certificates of insurance quickly — often within hours of a request. We can also add additional insureds and process endorsements to meet contract requirements on short notice.
Frequently Asked Questions
Is general liability insurance required by law in Florida?+−
Florida does not require most businesses to carry general liability insurance by law. However, it is often required by commercial landlords, general contractors, licensing boards, and government contracts. Even when not legally required, it is strongly recommended for any business that interacts with the public or works on others' property.
What is the difference between GL and professional liability?+−
General liability covers bodily injury, property damage, and advertising injury. Professional liability (also called errors and omissions or E&O) covers claims arising from professional mistakes, bad advice, or failure to perform a service as promised. Many businesses need both.
Does GL cover my subcontractors?+−
Your GL policy covers your own operations. Subcontractors should carry their own GL policies. However, if a subcontractor causes damage and doesn't have coverage, your policy may be called upon. This is why requiring COIs from all subs is essential.
What is an occurrence vs. claims-made GL policy?+−
An occurrence policy covers claims for incidents that happen during the policy period, regardless of when the claim is filed. A claims-made policy only covers claims filed while the policy is active. Most small business GL policies are written on an occurrence basis, which provides broader protection.
How quickly can I get a GL policy in Florida?+−
For most small businesses, a GL policy can be quoted and bound within 24 hours through an independent agent. Larger or higher-risk businesses may take longer. Having your revenue figures, description of operations, and claims history ready speeds up the process.