General liability insurance is critical for business owners to have for a few reasons. This type of insurance helps protect against certain kinds of personal injury and property damage connected to work.

Who Should Have It? 

Both contractors and business owners are encouraged to get general liability insurance to help protect each against lawsuits or court costs associated with an on-the-job injury. If a small business owner decides to forgo liability coverage, then the consequences of a personal injury lawsuit could be crippling.

Contractors might also be required to have this kind of liability coverage before beginning work for certain employers. In most instances, contractors will only need general liability coverage whereas business owners might require a business owner’s policy. 

A business owner’s policy includes both general liability coverage and property insurance coverage. If, for example, an employee operated a company vehicle and didn’t own any commercial property, then that employee would probably only need general liability coverage.