Insurance
General Liability Insurance Policy
General liability (GL) insurance — also called commercial general liability (CGL) — is a business policy that covers third-party claims of bodily injury, property damage, and personal or advertising injury. The policy document lists the insurer, policy number, per-occurrence and aggregate limits, the named insured, and the coverage term — and is the backbone of most small-business coverage.
Most small businesses carry general liability limits of $1 million per occurrence and $2 million aggregate for each policy period.
Written & maintained by the Granite team · Last updated June 2026
Overview
A general liability policy is issued to a business and renews annually. It's what responds when a customer slips in your shop, your work damages a client's property, or you're accused of libel in an ad. Most client and lease contracts require it, which is why GL is usually the first policy a business buys.
The declarations page summarizes limits and premium; the policy form behind it defines what's covered and excluded. A certificate of insurance is the short proof-of-coverage document derived from this policy.
When you’ll get your General Liability Insurance Policy
- You started a business and a client or landlord requires liability coverage
- You renewed or switched your commercial GL carrier
- You need to issue a certificate of insurance from this policy
- You bid on work that requires specific liability limits
- You operate a storefront, job site, or service business with third-party exposure
What’s on your General Liability Insurance Policy
These are the fields Granite reads and extracts automatically the moment you upload one.
- Named Insured
- The business the policy covers.
- Carrier & Policy Number
- The insurer and the unique policy identifier.
- Per-Occurrence Limit
- The most the policy pays for any single claim.
- Aggregate Limit
- The most the policy pays in total across the policy term.
- Policy Term
- The effective and expiration dates of coverage.
- Premium
- What the coverage costs for the term.
How long to keep it
Keep each annual policy permanently, or at least 7+ years past the term.
General liability often covers claims that surface years after the work — an injury or property-damage suit can be filed long after the policy expired. Because coverage is tied to the policy in force at the time of the incident, keeping every expired GL policy lets you prove what was covered when an old claim lands.
How Granite handles your General Liability Insurance Policy
Granite reads your GL declarations page — named insured, carrier, policy number, per-occurrence and aggregate limits, and term — and files it with your business documents. It keeps every renewed year, not just the current one, so when a claim references a prior period you can pull the exact policy in force then, and it reminds you before the term lapses.
FAQ
General Liability Insurance Policy: common questions
- What does general liability insurance cover?
- General liability covers third-party claims of bodily injury, property damage, and personal or advertising injury caused by your business. Examples: a customer slips on your floor, your crew damages a client's wall, or you're accused of libel in an ad. It can pay medical bills, legal defense, and settlements up to your policy limits.
- What is not covered by general liability?
- General liability does not cover your own injuries or property, employee injuries (workers' compensation), auto accidents (commercial auto), professional mistakes (errors & omissions), or your business equipment (commercial property). Those each require a separate policy. GL only responds to third-party claims arising from your operations, premises, or products.
- Do I need general liability insurance for an LLC?
- It is not legally required for most LLCs, but it is strongly recommended — an LLC shields your personal assets from business debts, not from liability claims against the business itself. Many clients, landlords, and contracts also require it before you can sign or start work, so most LLCs carry it regardless.
- What's the difference between per-occurrence and aggregate limits?
- The per-occurrence limit is the most the policy pays for any single claim; the aggregate limit is the most it pays in total over the policy term. A common structure is $1M per occurrence / $2M aggregate — meaning each claim is capped at $1M and all claims combined at $2M for the year. The aggregate doesn't reset until renewal.
- How long should I keep general liability policies?
- Keep every annual GL policy permanently, or at least seven-plus years past its term. Liability claims can surface years after the work, and coverage is tied to the policy in force at the time of the incident — so an expired policy may still be the one that responds to an old claim.
Sources
This page is checked against primary and authoritative sources:
Keep your General Liability Insurance Policy in one place.
Drop it in once. Granite reads it, files it, and makes it findable forever — by you today, and by the people who'll need it later.