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: While entering your office, a client trips over a rug, falls, and breaks her wrist. Your general liability policy may cover the costs of treating the injury. If a lawsuit arises from the injury, it may also cover the costs of the lawsuit.

Example 2: One winter morning, your area experiences unforecast snow and ice. Before you can shovel your sidewalks and apply ice-melt, your early morning client arrives. Upon stepping onto the stairs leading to your front door, the client slips and falls, landing hard on his backside. The intense pain sends him to the nearest urgent care center where he receives medical attention. Your general liability insurance policy should cover the costs of the medical care needed for the fall.

Example 3: When placing an ad online for your services, you accidentally forget a zero, making your introductory personal styling offer much cheaper than you intended. You don’t realize the mistake until a potential client calls to inquire about your services and the advertised price. Upon telling the client that you made a mistake in the ad and telling them your actual sale price, they sue you for false advertising. Your general liability insurance policy may cover the costs associated with the lawsuit.

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

The average personal styling business in America spends between $350-$750 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 Personal Styling 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 personal styling businesses should obtain:

Home-Based Business Insurance

If you operate your personal styling business out of your home, you’ll want to consider purchasing a home-based business insurance policy. These policies help financially protect you in the event your business equipment is damaged or destroyed due to a covered event.

Professional Liability Insurance

Professional liability insurance protects you against lawsuits that arise due to your advice accidentally harming a client or not leading to the desired results.

Types Of Coverage Some Personal Styling Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your personal styling 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.

Data Breach Insurance

Data breach insurance is also known as cyber liability insurance. It helps protect you against lawsuits from clients if information is stolen from your computer systems.

Commercial Property Insurance

If you own an office or commercial space where you meet with clients, you’ll want to acquire a commercial property insurance policy. This helps financially protect you in the event that your building or the property stored inside the building is damaged or destroyed due to a covered event.

Workers’ Compensation Insurance

If your personal styling business employs other workers, like front desk personnel and assistant stylists, you’ll want to purchase workers’ compensation insurance, which may help pay for any on-the-job injuries that you employees experience. Most states legally require businesses to carry this if they have any part-time or full-time employees.

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.