General liability is the foundational coverage for nearly every Texas business. It protects against claims for bodily injury, property damage, and personal or advertising injury that arise out of your operations, and it pays for legal defense even when a claim turns out to be groundless.
What is general liability insurance?
Commercial General Liability (CGL) insurance covers third-party claims when your business is alleged to have caused injury or damage to a customer, vendor, or member of the public. The policy responds to both the cost of settlement or judgment and the cost of legal defense.
Why you need it:
- Required by most commercial leases
- Required by most clients and general contractors before contract signing
- Pays for legal defense even when a claim is groundless
- Covers slip-and-fall, faulty work, and reputational claims
- Foundational layer that other commercial policies (umbrella, E&O) build on
What it typically covers:
- Bodily injury liability
- Property damage liability
- Personal and advertising injury (libel, slander, copyright)
- Medical payments
- Products and completed operations liability
- Premises liability
Frequently asked questions:
Is general liability required in Texas?
It is not required by Texas state law, but it is effectively required by commercial leases, lenders, and most B2B contracts.
What is the difference between a BOP and standalone general liability?
A BOP bundles general liability with commercial property. Standalone GL is a single coverage, useful for businesses without significant property exposure or for those that need higher GL limits than a BOP allows.
Does GL cover employee injuries?
No, employee injuries are covered by workers’ compensation, which is a separate policy.