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: You scheduled a client meeting late in the evening at your talent agency after the cleaning crew swept and mopped the floors. When your client arrives, the floors are still wet, and he slips and falls hitting his head. Your general liability insurance policy may help cover any medical costs related to the injury as well as potential lawsuits.

Example 2: One of your employees accidentally leaves a box in a stairwell. As a result, one of your clients trips and falls over it, resulting in a severe injury and the need for immediate medical attention. Your policy may cover accident-related costs.

Example 3: Nothing went wrong during your meeting, and you didn’t hear about any accidents on your property. However, seemingly out of nowhere, you are confronted with an accident-related lawsuit. Your general liability insurance policy may cover the costs associated with any potential frivolous lawsuits or false claims.

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, talent agencies 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 Talent Agencies 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 talent agencies should obtain:

Professional Liability Insurance

This type of insurance is also sometimes referred to as errors and omissions insurance. It protects you against lawsuits related to mistakes made during the course of business or by a member of the talent agency.

Commercial Umbrella Insurance

Commercial umbrella insurance helps pay extremely high dollar general liability insurance claims that exceed the original policy’s limitations.

Workers’ Compensation Insurance

Workers’ compensation insurance helps pay for employee injuries that occur while they are working. Common on-the-job injuries include slips and falls and back injuries. If a company has part-time or full-time employees, it is legally required to carry this coverage in most states.

Types Of Coverage Some Talent Agencies May Need

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

Commercial Property Insurance

If your talent agency has a physical location, you’ll need commercial property insurance, which pays for certain covered losses that may include fire, theft, vandalism, and certain weather events.

Cyber Liability Coverage

Cyber liability coverage protects you in the event that your digital information, like customer’s personal and banking information, is stolen.

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.