General liability insurance (GLI) can aid with allegations that your company damaged property or caused bodily harm. This insurance is also known as general liability commercial insurance. GLI is available as a stand-alone policy or as a Business Owner’s Policy (BOP) package with other important coverages.

With general liability (GL) insurance, you can shield your company from a wide range of dangers. However, there are a lot of misconceptions regarding general liability insurance that could expose you to high-priced liability claims and litigation.

Some of the most widespread assumptions concerning general liability insurance coverage are clarified in this article.

Misconception #1: It Is Enough to Have a Business Owner Policy

Depending on your sector, a BOP provides property and liability protection in one bundle, but it might not be adequate. You might need to increase your coverage with choices like an umbrella insurance plan because the majority of BOP policies provide little General Liability protection.

Misconception #2: All Risks Are Covered By General Liability Insurance

A general liability insurance coverage does not guarantee that all potential liabilities are covered. The following third-party losses are frequently covered by commercial general liability insurance:

  • Physical harm, such as from a slip, trip, and fall incident for which your company is at fault
  • Your business caused property damage
  • Reputational damage

Misconception #3: Small Entreprises Avoid Insurable Risks

Regardless of the size of your company, a rival could nonetheless sue you for copyright infringement or reputational harm. Additionally, a client hurt while on your property has the right to sue you. Regardless of its size, your firm confronts a lot of liability concerns.

Misconception #4: Insurance for Home-Based Companies Is Not Necessary

Home-based businesses may cause property damage or personal injury, but these losses are typically not covered by homeowner insurance plans. Medical expenses, repairs, and legal fees resulting from such obligations can all be covered with the use of a separate general liability policy.

Misconception #5: A General Liability Policy Is Enough Protection

A general liability policy won’t protect you from obligations like mistakes and omissions that cost a client money. If you work in a service-related field, such as consulting, real estate, or healthcare, you should get professional liability insurance to protect you from the more speculative risks.

Misconception #6: Your Employees Are Covered

Worker’s compensation claims and employment disputes are not covered by commercial general liability insurance. To protect your employees against accidents, illnesses, or fatalities at work, you must purchase a worker’s compensation policy.

Misconception #7: Your Commercial Real Estate Is Protected from Damage

Property damage to third parties for whom your company is at fault is covered by general liability insurance. 

Damage to your owned or rented office space and equipment is not covered. You’ll need to get commercial property insurance to receive this protection.

Misconception #8: It Includes Liability Coverage for Commercial Vehicles

You are responsible for any harm or damage caused to the other driver’s property if one of your work vehicles is at fault in an accident. Commercial auto liability lawsuits are not covered by general liability. For that, you’ll need to purchase a commercial auto insurance policy.


To prevent underinsuring your business, it’s critical to be aware of these insurance fallacies. It’s also crucial to take into account any relevant limits and exclusions when talking about general liability insurance. 

For additional information on protecting your small business with general liability coverage, speak with professionals.

If you’re looking for cheap general liability insurance for contractors, Pascal Burke Insurance Brokerage Inc. is the place for you! 

We are specialists in an array of policies that cover not only general cases but specialty contractors. We are dedicated to providing insurance that fits contractors’ needs. Contact us today to learn more.