What Is General Liability Insurance and Do I Really Need It for My Business?

Introduction

If you run a business in California, you may have heard of general liability insurance but aren’t sure what it actually protects—let alone whether you need it. From defending against lawsuits to covering medical bills, general liability can help safeguard your company’s finances and reputation.

In this article, you’ll learn:

• What general liability insurance covers
  
  
• Who in California needs it
  
  
• Real-world scenarios where it saves businesses money
  
  
• How much it costs in 2025
  
  
• How eWay Insurance helps you find the best policy—for less
  
  

By the end, you’ll be empowered to decide whether general liability coverage is right for your business—and know how to get the best one in Los Angeles, San Diego, and beyond.

What Is General Liability Insurance?

General liability insurance—also known as commercial general liability (CGL)—is a foundational business cover protecting against everyday risks, including:

• Third-party bodily injury (e.g., a client slips on your property)
  
  
• Third-party property damage (e.g., you accidentally damage a client’s possessions)
  
  
• Personal and advertising injury (e.g., defamation, slander, false advertising)
  
  
• Medical payments for guests hurt on your premises
  
  

What it does not cover:

• Professional mistakes (see professional liability)
  
  
• Auto-related incidents (see commercial auto insurance)
  
  
• Injury to employees (see workers’ compensation)
  
  

If your business interacts with customers, visits client locations, or has a physical presence, general liability is a critical form of protection.

Do You Really Need It for Your Business?

Many Californians underestimate this risk—but legal claims don’t require intent. You don’t need to be at fault to get sued.

Typical California Scenarios:

• A shopper trips in your retail space
  
  
• A subcontractor’s tool causes damage to a homeowner’s property
  
  
• A marketing campaign includes an unintentional slur or trademark issue
  
  
• Contractors, tradespeople, caterers—nearly every business benefits from liability protection
  
  

eWay Insurance frequently sees clients avoid costly lawsuits and expenses thanks to having the right coverage when accidents happen—especially in Los Angeles and other densely populated regions.

How Much Does General Liability Insurance Cost in 2025?

The cost of general liability insurance for California small businesses depends on your industry, business size, location, and risk profile.

Here’s a general breakdown of what you can expect:

• Freelancers or solo consultants typically pay between $350 and $600 per year. These are usually low-risk policies for those working remotely or from home without client interaction.
  
  
• Small local service businesses, such as plumbers, electricians, or gardeners, usually see premiums in the range of $600 to $1,200 annually, depending on whether they work on client properties or hire subcontractors.
  
  
• Retailers or hospitality businesses with physical storefronts—like boutique shops, cafes, or salons—can expect to pay between $1,200 and $2,500 per year, due to higher foot traffic and public exposure.
  
  

Your actual premium can vary based on several factors, including your ZIP code (especially if you’re located in higher-risk areas of Los Angeles), your annual revenue, number of employees, and claims history.

At eWay Insurance, we analyze all these factors to customize a quote that fits your exact business model. By comparing real-time rates from over 80 carriers, we make sure you get quality protection at the most competitive price available.

Why California Businesses Benefit from Every Risk

• Higher lawsuit frequency: California has one of the nation’s highest rates of liability claims.
  
  
• Dense population areas: Greater foot traffic and customer exposure increases risk.
  
  
• Contractual coverage requirements: Landlords, clients, and vendors often require proof of liability coverage before signing contracts or leases.
  
  

With so much at stake, local companies—from tradespeople and salons to startups—often avoid operational delays by securing eWay insurance quickly and efficiently.

What Does eWay Insurance Do for You?

1. Comprehensive Quote Comparison
   eWay Insurance pulls quotes from dozens of reliable providers to find the best balance of price and coverage.
   
   
2. Policy Guidance and Customization
   They help you select coverage limits and endorsements for specific risks—e.g., fire protection, tenant liability, or liquor liability.
   
   
3. Fast, Friendly Service
   Licensed, bilingual agents assist via phone, online, or in-person—often getting policy in place within a day.
   
   
4. Policy Management & Renewal Support
   Annual reviews ensure your coverage adapts to business growth, changing lease requirements, or evolving risk profiles.
   
   
5. DMV and Compliance Assistance
   Need a Certificate of Insurance for a lease or client contract? eWay Insurance provides it—fast.
   
   

How to Decide: Step-by-Step

1. List how your business interacts with customers, clients, and property
   
   
2. Consider the financial burden of a single lawsuit or injury
   
   
3. Get free, no-obligation quotes—compare same coverage from multiple insurers
   
   
4. Choose a policy from a trusted broker with guidance and local support
   
   

eWay Insurance simplifies this process—saving you time, effort, and cost.

Frequently Asked Questions

1. What coverage limits should I get?
California guidelines suggest no less than $1 million per occurrence. eWay Insurance helps you customize limits based on your industry and contract needs.

2. Is general liability required by law?
Not statewide, but often required by landlords, vendors, and contractors for permits or certification in California cities.

3. What happens if I decline this coverage?
If a claim is made against your business, you’ll pay legal and medical fees out-of-pocket, which could jeopardize your finances.

4. Can I bundle general liability with other policies?
Yes. Bundling with commercial auto, cyber, or inland marine often earns multi-policy discounts—eWay Insurance can show you how to improve value.

5. What’s the difference between general and professional liability?
General liability covers physical incidents and injury; professional liability covers service errors or advice-related mistakes. You might need both depending on your work.

6. How fast can I get a quote and policy?
With eWay Insurance, most businesses receive quotes within an hour and can bind coverage the same day.

Final Thoughts

Yes, you likely need general liability insurance for your California business. It’s affordable, protects you from expensive legal claims, and may be required to operate or sign contracts.

eWay Insurance makes it easy to get customized coverage from trusted carriers—with knowledgeable guidance, quick service, and competitive rates.