Everyone needs general liability insurance. The same goes for businesses. Accidents can happen anywhere at any time, even in the most unexpected ways. A sudden lawsuit can ruin a business that's not prepared. General liability insurance helps lessen the burden that comes with accidents such as this.

General liability insurance is a type of insurance that covers lawsuits and accidents related to non-professional negligent acts.

General liability insurance covers three main areas:

• Bodily Injury: This covers medical expenses as well as legal fees related to a third-party injury on the property.
• Property Damage: This covers incidents of property damage that occurs out of everyday business activity.
• Personal/Advertising Injury: This coverage covers personal and advertising injury such as libel, slander, copyright infringement and invasion of privacy.

Most general liability policies begin at $1 million, but your business may need higher limits, depending on the likelihood of lawsuits, size of the business and nature of potential lawsuits.

General liability insurance protects both the business and victims in the event of an accident that results in bodily injury, property damage, and personal or advertising injury. The policyholder pays monthly or yearly premiums for coverage. When a claim is filed and approved, the policyholder will receive compensation for certain expenses related to the incident.

General liability insurance prices vary depending on location, the size of the business, the claims history and industry, the deductible and applicatble coverage limits. For a $1 million policy, businesses may pay between $300 and $1,000 a year for general liability insurance.

General liability insurance covers the business and its employees, as well as any victim of a general liability accident.