Most small companies need this insurance, especially if you rent or own an office or commercial space. And many client contracts include requirements for general liability insurance.

Even if these don’t apply to you, small businesses that work directly with clients and customers usually benefit from commercial general liability insurance, also known as a CGL policy. This insurance policy can keep your company financially stable if a customer or competitor sues you.

Because general liability insurance provides such essential coverage, most small business owners buy the policy right after starting their business.