A customer slips on your shop floor. Your handyman knocks a client’s TV off the wall. A sign you put up falls on a parked car. None of these is unusual, and any one of them can cost more than a small business has in the bank. General liability insurance is the policy that pays for injuries and property damage your business causes to other people.
The short version:
- It covers injuries to customers and other people, damage to their property, and the cost of defending you if you are sued.
- It does not cover your own employees’ injuries or accidents in your work vehicles. Those need separate policies.
- California law does not require most businesses to carry it, but landlords, clients and some contractor licenses do.
- General liability from MIS Insurance starts as low as $59 a month. Prices vary.
What general liability insurance covers
A general liability policy typically pays for:
- Bodily injury to other people: a customer or visitor who is hurt at your business or because of your work.
- Damage to other people’s property: something you or your crew break, burn or flood while working.
- Legal defense: attorney fees and court costs if you are sued, even when the claim has no merit.
- Personal and advertising injury: claims such as libel, slander or using someone else’s work in your advertising.
- Completed work and products: damage or injury that shows up after the job is finished or the product is sold.
What it does not cover
General liability is about harm to other people. These need their own policies:
| If this happens | This is the policy that responds |
|---|---|
| An employee is hurt on the job | Workers’ compensation |
| You or an employee crash a work vehicle | Commercial auto |
| Your own tools, equipment or building are damaged or stolen | Property or equipment coverage |
| A client says your professional advice or design cost them money | Professional liability (errors and omissions) |
Is general liability required in California?
For most businesses, no state law says you must have it. In practice, many businesses cannot operate without it:
- Commercial landlords usually require it in the lease.
- Clients and general contractors often ask for proof of insurance before you start work.
- Contractors licensed as an LLC must carry liability insurance to hold the license. The Contractors State License Board requires at least $1 million for a company with five or fewer people on the license, plus $100,000 for each additional person, up to $5 million.
How much does general liability cost?
General liability from MIS Insurance starts as low as $59 a month. Prices vary. Yours depends on:
- The kind of work you do. Riskier trades cost more.
- Your yearly sales or payroll.
- The coverage limits you choose. Many contracts ask for $1 million per claim.
- Your claims history.
- Where you work.
We are an independent agency, so we compare several carriers to find small and mom-and-pop businesses the best rate.
Who buys it
- Contractors and handymen
- Plumbers and electricians
- Taco trucks and food trucks
- Shops and restaurants
- Other small, mom-and-pop businesses
What is a certificate of insurance?
It is a one-page document that proves you are insured and shows your coverage limits. Landlords, clients and general contractors ask for it before they let you start. Once your policy is in place, we can send a certificate to whoever needs it.
Common questions
I work alone. Do I still need general liability?
If you work at customers’ homes or businesses, or customers come to you, yes, it is worth having. Without it, a single claim comes out of your own pocket.
Does general liability cover my employees if they get hurt?
No. Employee injuries are covered by workers’ compensation, which California requires as soon as you have one employee.
Does my homeowners policy cover my home-based business?
Usually not. Most homeowners policies exclude business activity, so a home-based business needs its own liability coverage.
What else does my business need?
Most small businesses also need workers’ comp if they have employees and commercial auto if they use vehicles for work.
Need a general liability quote?
Start at our general liability insurance page, or call 800-726-0640, Monday through Friday, 8 am to 6 pm Pacific. MIS Insurance Services is an independent agency rated 4.9 stars across more than 3,100 Google reviews.
Coverage we can help with
- General liability insurance, as low as $59 a month
- Workers’ compensation insurance, as low as $83 a month
- Commercial auto insurance, as low as $79 a month
- Homeowners insurance, as low as $69 a month, and as low as $175 a month for brush-area homes and homes with claims
- Condo insurance, as low as $79 a month
- Renters insurance, as low as $11 a month
- Landlord and investment property insurance, as low as $75 a month
- Short-term rental insurance, as low as $85 a month
- All property insurance
Prices vary by business, property, location and coverage.
This article is general information, not legal advice. What a policy covers depends on the policy you buy, and California’s rules change. Confirm the details for your own situation with your agent. Last reviewed October 2026.