The short answer
General liability addresses covered third-party bodily injury, property damage, and specified personal and advertising injury claims. A $1M per-occurrence/$2M aggregate policy is a common contract requirement. The $250–$3,000 annual range below is an illustrative software-company budget, not a quote. Binding and certificate timing depend on carrier approval and the wording needed.
Use this guide to prepare questions, not to establish coverage. Any unsourced costs, limits or timing ranges are illustrative planning examples, not quotes, verified market averages or carrier commitments.
- Common policy limits
- $1M / $2M
- Illustrative annual budget
- $250–$3,000
- Usual policy basis
- Occurrence
What general liability covers
| Coverage part | What it covers | Startup example |
|---|---|---|
| Bodily injury | Injuries to people who aren’t your employees | A visitor trips in your office |
| Property damage | Damage to other people’s property | Your team damages a client’s conference room |
| Personal and advertising injury | Libel, slander, copyright in your ads, privacy | Your ad copies a competitor’s slogan |
| Products-completed operations | Claims from your finished work or products | A device you installed falls later |
| Medical payments | Small medical bills, regardless of fault | First aid costs for a visitor |
Check the defense-cost provisions of the actual form and endorsements. The examples above do not establish coverage for a particular claim.
What general liability doesn’t cover
- Software failures and missed deliverables: that’s Tech E&O.
- Data breaches and ransomware: that’s cyber.
- Injuries to your own employees: that’s workers’ comp.
- Your own equipment and office: that’s property coverage.
- Company-owned vehicles: that’s commercial auto.
How general liability limits and policy forms work
General liability is commonly written on an occurrence basis, tied to when covered injury or damage occurs and subject to policy conditions. A $1M/$2M requirement usually refers to a $1M per-occurrence limit and a $2M general aggregate; other coverage parts may have separate limits. Some startups buy it inside a businessowners policy that also includes specified property and business income coverage.
What general liability costs and how fast you can get it
For budgeting only, the examples use $250 to $600 annually for a remote pre-revenue company and $1,500 to $3,000 for a larger company with an office. These are not measured market averages or guaranteed offers. Request a quote for your actual operations, location and limits.
For the documents and steps that affect a deadline, see general liability and certificate timing. Customer contracts often add endorsements; see additional insured, waiver, and primary and noncontributory wording. Companies that install hardware need a closer review; see insurance for software companies with on-site installs. Terms are defined in the startup insurance glossary.
Illustrative budgets, not carrier quotes. No same-day binding or certificate delivery is promised. Your price and timing depend on the application, operations, location, policy terms and carrier approval.
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A few more answers
Frequently asked questions
Is general liability insurance required by law?
Requirements depend on your business, licenses, location and contracts. Customer contracts and office leases often ask for it. Check the rules that apply to your particular activity rather than assume a general exemption.
What is an occurrence policy?
An occurrence policy generally looks to when covered injury or damage occurred. A later claim may still fall within that policy, subject to its wording and reporting conditions. General liability is commonly written this way; Tech E&O and cyber are usually claims-made.
Does general liability cover injuries to my employees?
No. Employee injuries are covered by workers’ compensation, which most states require from the first employee. GL excludes them.
What is personal and advertising injury?
It addresses specified offenses such as certain libel, privacy and advertising-related copyright claims, subject to exclusions. It is not general trademark or intellectual-property protection, and it does not mean infringement in your product is covered.
Does general liability cover a data breach?
No. General liability excludes data breaches and electronic data claims. Cyber insurance covers breach response costs and claims from people whose data was exposed.
General information, not a coverage determination or legal advice. Unless a specific source is identified, prices and timing ranges are illustrative planning examples—not measured market averages, quotes or guarantees. Policy wording, carrier, state and your company’s operations determine what applies.