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Home › Business Insurance in Hawaiʻi › Commercial Casualty Insurance › General Liability Insurance

Almost every business can encounter situations where damage to their operation, products, services and their reputation can lead to financial losses. General liability insurance is a type of business insurance for companies of all sizes that protects against financial losses that occur due to liability claims from bodily injury, property damage, products and personal or advertising injury amongst others.

This type of insurance goes by other names such as business liability insurance and commercial general liability insurance as well.

Types Of Businesses That Need General Liability Insurance

General liability insurance is recommended for all businesses, but it is especially important if you fall into one of these categories:

  • Small and Large business owners
  • IT contractors
  • Real estate agents
  • Consultants
  • Marketing firms
  • Janitorial services
  • General or artisan contractors

Essentially, if you have customers who visit your place of business, work with clients, or advertise your business, general liability insurance can protect you from claims you may face as a result of doing business.

Cost Factors

Costs for general liability insurance vary based on a number of factors. Factors that alter cost include your company’s general risk exposure, business experience, policy limits and claims history. If your company has been in business for a number of years, is deemed low risk operationally and has little prior claims, coverage costs are likely to be quite low.

Why You Need It

General liability insurance protects your business in case of liability claims, lawsuits, investigations, medical damages and attorney fees.

Many clients and employers will not work with businesses that do not carry general liability insurance. Without general liability insurance your business is vulnerable to claims that could lead to bankruptcy. Business owners should carefully consider general liability insurance with an Atlas Specialist to determine if it is right for you.

Other Coverage Under Atlas Insurance

Though general liability insurance can safeguard your business from many types of financial losses, it does not typically cover employee injuries, auto accidents, professional errors or theft. Coverage for these specific exposures may be found through other insurance policies such as a workers’ compensation or professional liability.

Trust The Professionals To Provide Robust General Liability Insurance

Whether you are unsure if you need general liability insurance or you would like to explore other options that could make a policy perfectly suited to your business, be sure to work with the professionals. Our Atlas Insurance Agency, A Marsh & McLennan Agency LLC team can customize your policy to suit your business’ specific risks and needs. Request a quote online to learn more or call (808) 400-6680 to get started with a general liability insurance policy today.

Frequently Asked Questions About General Liability Insurance

General liability insurance covers third-party claims for bodily injury, property damage, personal injury, advertising injury, and product-related liability. Typical examples include a customer slipping on a wet floor, an employee accidentally damaging a client’s property during a job, a competitor alleging libel or slander in your marketing, or a product causing harm after delivery. The policy pays for legal defense, medical expenses, settlements, court judgments, and investigation costs related to covered claims.

General liability is not legally required by the state of Hawaiʻi, but it is often required by other parties. Commercial landlords typically require it as a condition of signing a lease. Client contracts, government contracts, vendor agreements, and licensing boards often mandate proof of coverage before work can begin. Many subcontractors must also carry it to be allowed on a job site. Even when it is not contractually required, a single uncovered claim can put a business out of operation.

General liability is a standalone policy that covers third-party injury and property damage claims. A Business Owner’s Policy bundles general liability together with commercial property and business interruption coverage into a single, cost-effective package designed for small and mid-sized businesses. If your business has physical assets, inventory, or a fixed location, a BOP is usually the better fit. If you are a service-based business with minimal physical footprint, standalone general liability often makes more sense.

General liability does not cover employee injuries, which fall under workers compensation, or damage to your own business property, which falls under commercial property insurance. It also does not cover auto accidents involving company vehicles, professional errors or negligent advice, theft, employment-related claims like discrimination or wrongful termination, or cyber incidents. Each of these exposures requires its own policy, and most businesses combine general liability with several complementary coverages.

Coverage limits depend on your industry, revenue, customer interaction, contract requirements, and overall risk exposure. Small service businesses often start with a $1 million per occurrence and $2 million aggregate limit, which is a common contract requirement. Contractors, manufacturers, retailers, and businesses with heavy public traffic typically need higher limits or a commercial umbrella policy stacked on top. Atlas reviews your operations and contracts to recommend appropriate limits for your specific situation.