Commercial General Liability Insurance in Texas
Protect your business from many of the unexpected liability risks that come with everyday operations, customers, vendors, products and completed work.
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Coverage for the Risks That Come With Doing Business
Running a business means interacting with customers, vendors, visitors and the public every day. Even with reasonable precautions, an accident, injury, property damage claim or allegation can create significant financial exposure.
Commercial general liability insurance, often called CGL or general liability insurance, can help protect your business against certain claims arising from covered bodily injury, property damage and personal or advertising injury, including the cost to defend those claims.
What Can Commercial General Liability Insurance Cover?
Coverage depends on the policy, endorsements, limits, exclusions and the circumstances of a claim. A typical CGL policy may address:
Bodily Injury
Certain covered claims when a third party alleges they were injured in connection with your business operations or premises.
Property Damage
Certain covered claims involving damage to someone else’s property arising from your business operations.
Personal & Advertising Injury
Depending on the policy, certain claims involving offenses such as libel, slander or other covered personal and advertising injury.
Products & Completed Operations
Certain covered claims arising from products you sell or work you have finished, after it leaves your hands.
Medical Payments
Many policies include limited coverage for certain medical expenses when someone is hurt on your premises, regardless of fault.
Legal Defense
A liability policy may provide defense for certain covered claims, even when the allegations turn out to be groundless.
Why Businesses Consider General Liability Insurance
Liability claims can arise from ordinary business activities. A customer could slip and fall at your location, an employee could accidentally damage a customer’s property, or a completed job could lead to a dispute over alleged damage.
General liability insurance is designed to help businesses address certain covered liability claims and associated defense costs, subject to the terms of the policy.
- A customer is injured at your business location.
- Your crew accidentally damages a customer’s property while on the job.
- A visitor alleges your business caused property damage.
- A competitor alleges a covered advertising injury.
- A completed project results in a covered third-party claim.
- Your business is named in a covered liability lawsuit.
What General Liability Usually Doesn’t Cover
General liability is a foundation, not a complete insurance program. These risks typically need their own coverage.
| Risk | Coverage to Consider |
|---|---|
| Injuries to your own employees | Workers’ compensation |
| Professional mistakes or bad advice | Professional liability (E&O) |
| Accidents involving business vehicles | Commercial auto |
| Damage to your own building or equipment | Commercial property |
| Data breaches and cyberattacks | Cyber insurance |
| Employee claims like wrongful termination | Employment practices liability |
| Large claims that exceed your limits | Commercial umbrella |
Understanding General Liability Limits
Most CGL policies list several limits on the declarations page. Here’s what the common ones mean.
Each Occurrence Limit
The most the policy will pay for covered damages from a single incident.
General Aggregate Limit
The most the policy will pay for covered claims during the policy period, across all incidents.
Products-Completed Operations Aggregate
A separate total limit for covered claims arising from your products or finished work.
Medical Expense Limit
A smaller per-person limit for certain medical payments, often available regardless of fault.
Many contracts and leases ask for $1 million per occurrence and $2 million aggregate, but the right limits depend on your operations and agreements.
Who May Need Commercial General Liability Insurance?
The right coverage depends on what your business does, where it operates, how it interacts with customers and vendors, and the contracts that apply to you.
Contractors & Trades
Electricians, plumbers, HVAC companies, remodelers and other trades may face liability exposures while working at customer locations.
Retail Stores
Customer foot traffic, displays and the products you sell can all create liability exposures.
Restaurants
Slips and falls, guest property and food-related claims are common concerns for restaurants and caterers.
Service Businesses
Salons, cleaners, repair shops and other service providers work with customers and their property every day.
Offices & Professional Firms
Clients and vendors visit your office, and leases frequently require proof of liability coverage.
Growing Texas Businesses
Signing leases, entering contracts and serving more customers often brings new liability requirements.
Many businesses must provide proof of liability insurance before starting work for a customer, landlord, general contractor or vendor.
Contracts often ask for specific limits or wording such as additional insured status, waiver of subrogation or primary and non-contributory coverage. Review those requirements with us before you sign, so your policy can be endorsed to match. Book a consultation.
Commercial Insurance With Personal Service
Choosing business insurance is about more than finding a policy with the right name. Your business has its own operations, customers, contracts, property, employees and exposures.
As an independent agency, Lavon Insurance takes the time to understand your business and helps you compare coverage options from carriers that may fit your needs.
Our Approach
- Understand how your business operates.
- Identify important liability exposures.
- Review contract and certificate requirements.
- Compare insurance carriers when appropriate.
- Help you understand the coverage you’re buying.
Commercial General Liability Insurance Questions
What is commercial general liability insurance?
Commercial general liability insurance is a type of business insurance designed to address certain third-party liability claims, including covered claims involving bodily injury, property damage and personal or advertising injury.
Is general liability insurance required for a business in Texas?
Texas does not generally require every business to carry a commercial general liability policy. However, contracts, leases, customers, lenders, licensing requirements or other circumstances may require particular coverage or limits.
Does general liability insurance cover employee injuries?
Commercial general liability insurance generally is not a substitute for workers’ compensation coverage for employee injuries. Businesses should evaluate workers’ compensation and other applicable coverages separately.
Does general liability insurance cover professional mistakes?
General liability and professional liability are different types of coverage. Certain professional errors or omissions may require a professional liability or errors and omissions policy.
What is the difference between general liability and a BOP?
A Business Owner’s Policy typically packages general liability with commercial property coverage for eligible small businesses. Some businesses buy general liability on its own, while others benefit from the bundle.
How much general liability insurance does my business need?
The appropriate limits depend on factors such as your industry, operations, contracts, customers, location and potential exposures. Lavon Insurance can help you review your business and explore available options.
Can general liability insurance cover a lawsuit?
A liability policy may provide defense and indemnity for certain covered claims, subject to the policy’s terms, conditions, exclusions, limits and other provisions. Coverage should not be assumed for a particular claim without reviewing the policy.
Build Out Your Business Insurance
General liability works best alongside coverage for the risks it leaves out.
Business Owner’s Policy
Bundle general liability with property coverage in one package.
Learn more →Commercial Umbrella
Extra liability limits above your general liability and auto policies.
Learn more →Professional Liability
Protection for certain claims involving errors in professional services.
Learn more →Workers’ Compensation
Coverage options for employee work-related injuries and illnesses.
Learn more →Commercial Auto
Coverage for vehicles your business owns or uses.
Learn more →Cyber Insurance
Coverage options for data breaches, ransomware and cyber liability.
Learn more →Protect Your Business With the Right Liability Coverage
Let’s take a closer look at your business operations, contract requirements and the general liability coverage available to you.
Insurance coverage is subject to policy terms, conditions, limits, exclusions, underwriting guidelines and applicable endorsements. Coverage availability and eligibility vary by insurance carrier and business circumstances. This page is for general informational purposes and does not modify or replace the terms of an insurance policy.