GENERAL LIABILITY INSURANCE
Running a business comes with risks—but getting protected doesn’t have to be complicated. At RPM Agency, we help Colorado businesses secure general liability coverage that shields them from accidents, lawsuits, and unexpected setbacks. We make it easy to get the protection you need with clear advice and tailored solutions that grow with your business.
What General Liability Insurance Can Cover
Bodily Injury to Others
Covers medical expenses, legal fees, and damages if someone is injured at your business or because of your operations. Whether it’s a customer slipping in your office or a delivery gone wrong, you’re protected.
Property Damage
Pays for repairs or replacement if your business accidentally damages someone else’s property. This could include anything from a broken window during a service visit to equipment damage at a client’s location.
Personal and Advertising Injury
Protects against claims like libel, slander, or false advertising made against your business. In today’s digital world, coverage for reputational risks is more important than ever.
Legal Defense Costs
Helps cover the cost of defending your business in lawsuits, even if the claims are groundless. Legal bills can add up fast, but the right policy can shield your finances from heavy losses.
Products and Completed Operations Coverage
Protects you if a product you sell or a service you complete later causes damage or injury. It’s a must-have for businesses offering goods, construction, or professional services.
Why Businesses in Colorado Need Liability Protection
It’s Often Required by Law or Contract
Many leases, vendor agreements, and licenses in Colorado require proof of liability insurance to operate.
Slip-and-Fall Claims Are Common
Retail, hospitality, and customer-facing businesses are especially vulnerable to claims—even if you weren’t negligent.
It Protects Your Reputation and Assets
One unexpected lawsuit could cost thousands. Liability coverage keeps your business protected from financial disruption and legal fallout.
Frequently Asked Questions
Does every business in Colorado need general liability insurance?
While not legally required by the state for all businesses, general liability insurance is highly recommended for almost any business operating in Colorado. It helps protect against unexpected third-party injury claims, property damage, and lawsuits, all of which could financially devastate a business without coverage. Clients, landlords, and vendors often require proof of this insurance before working with you. Having it in place can make it easier to win contracts and build trust.
What is typically covered under a general liability policy?
General liability insurance typically covers bodily injuries to non-employees, property damage caused by your business activities, and personal or advertising injury claims like slander or copyright infringement. It also covers the cost of your legal defense and settlements or judgments if you’re sued. Some policies even include limited protection for product-related claims. However, it’s important to review your policy closely to understand specific inclusions and limitations.
What types of claims are NOT covered by general liability insurance?
General liability insurance does not cover employee injuries (those fall under workers’ compensation), professional mistakes (covered by professional liability insurance), or damage to your own business property. It also won’t cover intentional harm caused by your business or its employees. If your business owns vehicles, you would need separate commercial auto insurance for those risks. Knowing these gaps helps ensure you have a full protection plan in place.
How much general liability coverage does a small business typically need?
Most small businesses in Colorado start with policies offering $1 million in coverage per occurrence and $2 million in aggregate total coverage. However, depending on your industry and the size of your operations, you may need higher limits or umbrella policies. Businesses involved in construction, public events, or client site visits often require additional protection. A good agent can help evaluate your risk profile and recommend appropriate limits.
Can general liability insurance help cover defense costs if I’m sued?
Yes, one of the major benefits of general liability insurance is that it helps cover legal defense costs—even if the lawsuit turns out to be groundless. This includes attorney fees, court costs, expert witnesses, and any settlements or judgments awarded up to your policy limits. Without coverage, these legal expenses could quickly spiral into tens of thousands of dollars or more. Having a strong policy in place provides critical financial protection in a lawsuit scenario.