About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.


Example 1:  Your client has left her sewing machine with you, as she is hoping you might be able to fix an issue.  Your employee knocks it off the table, destroying it. General liability insurance should cover the cost to replace this expensive equipment.

Example 2:  During a class you are teaching, a student injures herself, requiring medical assistance. A general liability policy should cover her medical bills.

Example 3:  On a social media post, an employee implies your competitor is unprofessional. The company has named you in a lawsuit, claiming they have lost revenue from this slander.  General liability insurance should cover your legal representation and court-awarded damages.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Cost Of General Liability Insurance

On average, longarm quilting businesses in America spend between $300 - $600 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner's policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Other Types Of Coverage Longarm Quilting Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all longarm quilting businesses should obtain:

Commercial Property Insurance

Commercial property insurance, often written as part of a business owner’s policy (BOP), insures the business-owned property, including the repair and/or replacement of the building and business property kept onsite.

To ensure proper coverage, policyholders should review coverage limitations and potential added endorsements. Entrepreneurs working out of their home should inquire about the cost of home-based business insurance.

Workers Compensation Insurance

Once your company has grown enough to have team members, the state will require you to cover them on a worker’s compensation policy. If an employee injures themselves performing business activities, the policy would pay their medical expenses and a portion of their lost wages. It will also protect you should a lawsuit arise from the accident, providing legal defense and court-awarded damages and/or settlements.

You can purchase workers compensation insurance as a standalone policy.

Types Of Coverage Some Longarm Quilting Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your longarm quilting business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Business Interruption Insurance

If your business has to shut down after a property claim, the financial impact could prove devastating.  Business interruption insurance, also known as business income insurance, lessens that burden. It provides loss of income, fixed expenses, and extra expense coverage, setting the business up at a temporary location while building repairs are being completed.  

This insurance is generally offered as part of a business owners’ policy (BOP) package.

Commercial Auto Insurance

If a business-owned vehicle is in an auto accident, commercial auto insurance can pay for the repairs to damaged vehicles, as well as medical expenses, liability claims, and lost equipment.  While the state mandates this policy’s minimum limits, owners should consider purchasing higher than the required minimum.   

You can purchase commercial auto insurance as a standalone policy or as part of a business owner’s policy (BOP).

Additional Steps To Protect Your Business

Although it's easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business' financial losses after an incident occurs, but it's much better to avoid losses altogether.

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business' internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.