Related coverage: General Liability Insurance
TL;DR: General liability insurance pays for third-party bodily injury, property damage, and certain advertising claims against your business. Most Florida small businesses, contractors, and service providers need it before they ever take a job, and many clients or landlords will require proof of it before they work with you.
What You Need
Before you start comparing policies, gather the following. Carriers use this information to calculate your premium.
- Business type and description. A cleaning company carries different risk than a graphic designer.
- Annual revenue. Premiums are often tied to how much business you do.
- Number of employees. More people on the job usually means more exposure.
- Physical locations. Do customers visit your space? That matters.
- Any prior claims. Be honest. Carriers check.
- Contract requirements. Some clients specify minimum coverage limits, often $1 million per occurrence.
Once you have those handy, the quoting process at B&B Insurance goes quickly.
1. Understand Exactly What General Liability Covers
General liability (GL) is not a catch-all business policy. It covers three specific categories of risk.
Bodily Injury to Third Parties
A customer walks into your Palm Beach County boutique, trips on a display stand, and breaks their wrist. They sue. Your GL policy covers their medical bills and your legal defense, up to your policy limit.
This is the scenario most people picture, and it is the most common GL claim for retail and service businesses.
Property Damage You Cause to Others
You run a landscaping crew in Lantana. Your equipment kicks a rock through a homeowner's sliding glass door. GL covers the repair. Without it, that bill comes out of your pocket or your relationship with that client ends badly, or both.
Personal and Advertising Injury
This one surprises a lot of owners. If a competitor claims your marketing materials copied their slogan, some advertising-injury claims may be covered, but employment-related exclusions can apply; review the policy wording. It is not unlimited, and intentional acts are excluded, but it does cover a real category of risk that small businesses overlook.
What GL does NOT cover:
- Your own property or equipment (that is commercial property coverage)
- Employee injuries on the job (that is workers' compensation)
- Vehicles used for business (that requires commercial auto insurance)
- Professional errors or bad advice (that is professional liability, sometimes called E&O)
2. Know Who Actually Requires This Coverage in Florida
Florida does not have a single statewide law that mandates GL for all businesses. But that does not mean you can skip it. Here is who will require it from you.
General contractors and subcontractors. If you pull permits or work as a sub, the GC above you almost certainly requires proof of GL before you set foot on a jobsite. The same applies if you are doing work for a property management company in West Palm Beach.
Commercial landlords. Most commercial leases in Palm Beach County require tenants to carry GL and name the landlord as an additional insured. If you are signing a lease for a shop, salon, or office, check the insurance requirements section before you sign.
Government contracts and licensing boards. Some Florida contractor licenses, including those issued through the Florida Department of Business and Professional Regulation, require proof of liability insurance as part of the application or renewal.
Corporate clients and retailers. If you supply goods or services to a larger company, their vendor agreements commonly require $1 million or $2 million in GL limits.
Even if none of these apply to you today, the risk of a lawsuit is still real. One trip-and-fall claim without coverage can cost more than years of premiums.
3. Choose the Right Coverage Limits
GL policies are structured with two limits you need to understand.
Per-occurrence limit. The maximum your policy pays for a single claim. Common amounts are $500,000 or $1 million.
Aggregate limit. The total the policy pays across all claims in a policy year. A $1 million per-occurrence policy may have a $2 million aggregate, but limits vary.
Use contract requirements, risk, and available quotes to choose appropriate per-occurrence and aggregate limits. Higher-risk trades, businesses with significant foot traffic, or those working on high-value properties may need $2 million per occurrence or an umbrella policy layered on top.
Do not just pick the lowest limit to save money. If a client's contract requires $1 million and you carry $500,000, you are in breach of the contract even if you technically have insurance.
Protect the business you've built. Talk to our business team
4. Decide Whether You Need a BOP Instead
Many small businesses actually buy a Business Owners Policy (BOP) rather than standalone GL. A BOP bundles general liability with commercial property coverage, which pays for damage to your own business equipment, inventory, and furnishings.
A BOP tends to make sense if:
- You own or rent a physical location where you store inventory or equipment
- You have business property worth protecting
- You want one policy and one renewal date
A standalone GL policy may be better if:
- You work entirely from home or at client sites
- You have minimal business property
- A specific contract or license requires only GL
An independent agency like B&B can quote both options so you can compare the actual cost difference. That is the advantage of working with someone who compares coverage and pricing from multiple carriers rather than a single company.
5. Add Endorsements That Match Your Actual Risk
A base GL policy covers a lot, but your specific business may need additional protection bolted on.
Additional insured endorsements. When a client or landlord asks to be named as an additional insured, this endorsement extends your coverage to protect them in certain situations. The availability and cost of an additional-insured endorsement vary by insurer and contract.
Products and completed operations. Check whether your GL form includes this coverage and what exclusions or limits apply to work or products after completion. A plumber who finishes a job and leaves, only for a leak to cause damage a week later, needs this.
Hired and non-owned auto. If employees use personal vehicles for work, ask about hired and non-owned auto liability through an appropriate commercial auto or business policy. A standard GL policy does not replace auto liability coverage.
Liquor liability. If your business serves or sells alcohol, standard GL excludes alcohol-related claims. You need a separate liquor liability policy or endorsement.
6. Get Quotes the Smart Way
Because B&B is an independent agency, we are not tied to one carrier. That matters when you are buying GL because pricing varies significantly between insurers for the same business type and coverage level.
Here is how to approach the quote process without wasting time.
- Start with your certificate of insurance requirements. If a client or landlord has sent you a specific requirements document, bring it. We can make sure the policy matches before you bind.
- Be accurate about your operations. Misrepresenting your business type can void a claim later. If you are a roofing contractor, say so, even though GL costs more for roofers.
- Ask about payment options. Many carriers offer monthly installment plans. Knowing your cash flow helps you pick a payment schedule that works.
- Request your certificate of insurance (COI) immediately after binding. Most clients and contractors will ask for this document as proof of coverage. Ask when the certificate will be issued after binding.
You can start the process at our contact page or call the Lantana office directly.
Common Mistakes
Assuming homeowners insurance covers a home-based business. If you run a business from home, your homeowners insurance may limit or exclude business-related claims; check the policy and any endorsements. A customer who visits your home office and gets hurt may not be covered under your home policy.
Skipping GL because you have a sole proprietorship. A sole proprietor is personally liable for business debts and judgments. There is no corporate shield. A lawsuit against your business is a lawsuit against you personally.
Letting the policy lapse between contracts. Some owners cancel coverage when work slows down. For an occurrence-based policy, the date of the covered incident usually determines which policy applies, even if a claim is filed later. NAIC explains business policy types. Claims-made policies can work differently; check your policy form before allowing a lapse. Talk to your agent before canceling.
Buying the cheapest policy without reading the exclusions. A low premium sometimes means a long list of excluded operations or a very narrow definition of covered work. An independent agent can walk you through what is and is not covered before you buy.
Not getting surety bonds when required alongside GL. Some contracts and licenses require both a bond and GL. They are not the same thing. A bond guarantees you will complete the work or meet a legal obligation. GL pays for damages. You may need both.
Bottom Line
General liability insurance is not a bureaucratic checkbox. It is the financial backstop between one bad day and a judgment that wipes out everything you have built.
For Florida small businesses, the combination of frequent severe weather, high foot traffic in tourist and retail areas, and an active legal environment makes this coverage especially important. A client slip, a contractor mistake, or a property damage claim can move fast.
B&B Insurance has been helping South Florida business owners find the right coverage since 1998. We are local, we are independent, and we compare coverage and pricing from multiple carriers to find a policy that fits your actual operation, not a generic one-size-fits-all plan.
Ready to get a quote? Visit our general liability page or reach out through our contact page and we will get back to you the same business day.
Protect the business you've built.
General liability, commercial auto, workers' comp, bonds, and more, bundled and shopped across carriers for South Florida businesses.
Frequently asked questions
Is general liability insurance required by law in Florida?
Florida does not have a single statewide mandate requiring all businesses to carry general liability insurance. However, many industries, contractor license boards, commercial landlords, and client contracts require it as a condition of doing business. In practice, most small businesses cannot operate without it.
How much does general liability insurance cost for a small business in Florida?
Cost depends on your industry, annual revenue, number of employees, and coverage limits. Higher-risk trades like roofing or demolition pay more than office-based businesses. Because pricing varies between carriers, an independent agency can compare coverage and pricing from multiple carriers for your specific business.
What is the difference between general liability and workers' compensation?
General liability covers injuries or property damage to third parties, such as customers or clients. Workers' compensation covers your own employees if they are hurt on the job. They are separate policies covering separate groups of people, and most businesses that have employees need both.
Does my homeowners insurance cover my home-based business?
Standard homeowners policies may limit or exclude business-related liability, including some client injuries at a home office. If you operate any part of your business from home, you should ask your agent whether you need a separate general liability policy or a home-based business endorsement.
What is an additional insured, and do I need to add one?
An additional insured is a person or company added to your policy who is also protected against certain claims arising from your work. Landlords and general contractors commonly require subcontractors and tenants to add them as additional insureds. Your agent can add this endorsement, often at little or no extra cost.
What is the difference between a surety bond and general liability insurance?
A surety bond guarantees that you will fulfill a contract or comply with a legal obligation. If you fail to do so, the bond pays the harmed party and you repay the bonding company. General liability insurance pays for damages caused by accidents or negligence. Some licenses and contracts in Florida require both, and they serve different purposes.
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