General Liability Insurance for Minnesota Businesses
General liability insurance is one of the most fundamental commercial coverages. It may respond to claims that your business caused bodily injury or property damage to others — whether a customer slips on your floor, a contractor damages a client's property, or an advertisement leads to a personal injury claim.
What General Liability Insurance Does
General liability insurance is designed to protect your business from third-party claims alleging bodily injury or property damage arising from your operations, products, or completed work. It may also respond to certain personal and advertising injury claims — such as libel, slander, or copyright infringement in your advertising.
When a covered claim is made, the policy may help pay for legal defense costs, settlements, and judgments — up to the policy's limits. Defense costs alone can be substantial even when a claim is ultimately resolved in your favor.
General liability is typically written on an occurrence basis, meaning it may respond to claims arising from incidents that occurred during the policy period, even if the claim is filed later. Some policies are written on a claims-made basis, which has different rules about when coverage applies.
Who Typically Needs General Liability
Nearly every business that interacts with customers, clients, or the public should evaluate general liability coverage. It is commonly required by landlords as a condition of a commercial lease, by clients as a condition of a contract, and by licensing boards in certain industries. Contractors, retailers, restaurants, service businesses, nonprofits, and professional offices all commonly carry general liability.
Exposures This Coverage May Address
Premises liability
A customer, visitor, or delivery person is injured on your business premises — a slip on a wet floor, a trip over an obstacle, or an injury from a falling object. General liability may respond to these claims.
Operations liability
Your employees cause bodily injury or property damage while performing work at a client's location or job site. General liability may respond to claims arising from your ongoing operations.
Products liability
A product you manufactured, distributed, or sold causes bodily injury or property damage. Products liability is typically included in a general liability policy as part of the products and completed operations coverage.
Completed operations
Work you completed causes bodily injury or property damage after the job is finished — for example, a contractor's completed work later causes a water leak that damages a client's property.
Personal and advertising injury
Claims alleging libel, slander, false arrest, malicious prosecution, or copyright infringement in your advertising. This coverage is distinct from bodily injury and property damage coverage.
Important Limitations and Exclusions to Understand
- General liability typically does not cover injuries to your own employees — that is addressed by workers' compensation insurance.
- Damage to property you own, rent, or have in your care, custody, or control is generally excluded or limited. A separate property policy addresses your own property.
- Professional errors and omissions — claims that your advice, design, or professional services caused a financial loss — are typically excluded. Professional liability (E&O) coverage addresses those claims.
- Intentional acts and criminal conduct are excluded.
- Pollution liability is typically excluded or significantly limited. Contractors and businesses with environmental exposures should evaluate whether a pollution liability endorsement or separate policy is appropriate.
- Cyber liability and data breach claims are typically excluded from general liability policies. Separate cyber liability coverage addresses those exposures.
Information Typically Needed to Evaluate Coverage
- Description of business operations — what you do, where you do it, and who your customers are
- Annual revenue and payroll
- Whether the business manufactures, distributes, or sells products
- Whether the business performs work at client locations or job sites
- Prior claims history — typically three to five years
- Any contractual requirements for coverage limits or additional insured status
Related Coverages to Consider
Business Owner's Policy
Combines general liability and commercial property in a single policy for qualifying businesses.
Learn moreCommercial Property
Covers your business property — general liability does not cover your own property.
Learn moreWorkers' Compensation
Covers employee injuries — general liability does not cover your own employees.
Learn moreCyber Liability
Covers data breach and cyber incident costs — typically excluded from general liability.
Learn moreBonds
Contractors often need both general liability and a surety bond to meet client and licensing requirements.
Learn moreIndustries We Commonly Help
Frequently Asked Questions
Coverage availability, terms, conditions, exclusions, and limits vary by carrier and individual risk. The information on this page is general in nature, does not constitute legal advice, and does not guarantee that any specific loss will be covered. Consult your policy documents for the terms that apply to your coverage.