Business Insurance  /  General Liability

Commercial Coverage

General Liability Insurance
for Texas Businesses.

General liability is the foundation of any business insurance program. If your business operates, serves clients, or works on someone else’s property, you need it — and you need it written right. We help Texas businesses get the coverage that actually holds up when a claim happens.

What Is General Liability Insurance

The coverage that protects your business from third-party claims.

General liability insurance — also called commercial general liability or CGL — covers your business when a third party claims that your business caused them bodily injury or damaged their property. It pays for legal defense, settlements, and judgments up to your policy limits. Without it, those costs come directly out of your business.

Most commercial leases require it before you can move in. Most clients, general contractors, and commercial properties require proof of it before you can work on-site. Many licensing bodies require it to operate. It’s the baseline that makes your business credible to the clients and partners you want.

“GL is the foundation. Without it, one claim from a customer, a client, or a bystander can put a business under. With it, you defend the claim and keep operating.”

Understanding what GL covers — and equally important, what it doesn’t — is the difference between businesses that are actually protected and businesses that just think they are.

What general liability covers:

  • Bodily injury to third parties — a customer injured at your location, a bystander hurt during your operations
  • Property damage to others — damage caused to a client’s property, a job site, or third-party property during your work
  • Personal and advertising injury — libel, slander, copyright infringement, defamation in your marketing
  • Legal defense costs — attorney fees and court costs to defend a covered claim, even if unfounded
  • Completed operations — claims that arise after a job is finished for work you performed
  • Medical payments — immediate medical costs for minor injuries to third parties, regardless of fault

Texas Doesn’t Require GL — But the Market Does

Texas law doesn’t mandate GL for most businesses. But commercial landlords, GCs, commercial clients, and licensing bodies routinely require it. Operating without GL doesn’t just create legal risk — it limits the contracts you can bid and the clients you can serve.

Texas Has a Significant Litigation Environment

Texas is one of the more litigious business environments in the country. Liability claims — especially in construction, contracting, and service industries — are common and can be significant. Adequate GL limits aren’t just a formality. They matter when a real claim lands.

Additional Insured Requirements Are Common

Most commercial contracts and GC relationships require you to name the other party as additional insured on your GL. The endorsement language matters — we make sure it’s structured correctly so you’re not creating a gap when you sign a contract.

Who Needs General Liability

If your business interacts with the public, clients, or other people’s property — you need GL.

Contractors & Trades

Required by virtually every GC, commercial client, and job site in Texas. Must cover completed operations and the specific types of work you do — not all GL policies are written the same way for contractors.

Landscaping & Outdoor Services

Every crew working on a client’s property has GL exposure. Mowers, irrigation, chemical applications, and equipment operation all create third-party liability that requires proper coverage with the right exclusions verified.

Service Businesses

If your employees work on client property — HVAC, plumbing, cleaning, repair, inspection — you have liability exposure every time someone is on a job. GL covers incidents that happen during your operations.

Retail & Storefront

Any business with customers on premises needs GL. Slip-and-fall claims, property damage, and advertising injury are real exposures. Most commercial leases require proof of GL before you can occupy the space.

Restaurants & Hospitality

Required by most commercial leases. Covers customer injuries and property damage. Restaurants serving alcohol need liquor liability alongside GL — standard GL excludes alcohol-related incidents.

Professional & Office-Based

Even desk-based businesses have GL exposure — client visits, advertising claims, property damage. GL covers the physical and operational side; E&O covers the professional advice and service side.

Real Risks. Real Scenarios.

What general liability actually protects you from.

These are the kinds of claims that happen to real businesses — and what GL is designed to do about them.

01
A customer slips and falls at your location
A spill, a wet floor, an uneven surface — slip-and-fall claims are among the most common in business insurance. Medical bills, lost wages, and legal fees add up fast. GL covers the claim and your defense costs so you don’t have to choose between paying the claim and keeping the lights on.

03
A completed job generates a claim months later
A client discovers a problem — a leak, a structural issue, damage that wasn’t apparent at completion — and holds you responsible. Completed operations coverage is part of GL and protects you after the work is done. For any contractor or trade business, this needs to be included and adequately funded.

05
A competitor claims your advertising caused them harm
A competitor claims your marketing contains defamatory statements or infringes their copyright. These are advertising and personal injury claims under GL — a coverage most business owners don’t think about until it comes up, but one that can generate significant legal costs to defend.

01
A customer slips and falls at your location
A spill, a wet floor, an uneven surface — slip-and-fall claims are among the most common in business insurance. Medical bills, lost wages, and legal fees add up fast. GL covers the claim and your defense costs so you don’t have to choose between paying the claim and keeping the lights on.

03
A completed job generates a claim months later
A client discovers a problem — a leak, a structural issue, damage that wasn’t apparent at completion — and holds you responsible. Completed operations coverage is part of GL and protects you after the work is done. For any contractor or trade business, this needs to be included and adequately funded.

05
A competitor claims your advertising caused them harm
A competitor claims your marketing contains defamatory statements or infringes their copyright. These are advertising and personal injury claims under GL — a coverage most business owners don’t think about until it comes up, but one that can generate significant legal costs to defend.

Common GL Coverage Gaps

What your current general liability policy might be missing.

01
Policy exclusions that carve out your actual work
A GL written for “general contracting” may exclude specific trades. A policy written for “landscaping” may exclude irrigation or chemical applications. GL policies are not standardized — exclusions vary, and the ones that matter most are the ones that match what you actually do. We read the policy before we place it.

03
Completed operations not included or under-funded
Some GL policies have low sub-limits on completed operations or restrict how long coverage applies after a job ends. For contractors and any trade where work can be disputed after completion, this is the single most important detail to verify before you bind a policy.

05
Assuming GL covers what it doesn’t
GL doesn’t cover employee injuries, your vehicles, your professional errors, your own property, or alcohol-related incidents. Businesses that rely on GL alone — without workers’ comp, commercial auto, or E&O where relevant — have significant uninsured exposure they may not recognize until a claim reveals it.

02
Limits that don’t match your contract requirements
$1M per occurrence and $2M aggregate are the minimums most commercial contracts require. Some clients, municipalities, and commercial properties require higher. Running minimums and then signing a contract that requires more creates a real gap — you may not find out until there’s an incident on that specific job.

04
Additional insured endorsements not properly structured
When a contract requires you to add someone as additional insured, the endorsement language matters. Getting it wrong can mean the contract requirement isn’t actually met — or a coverage dispute when a claim happens on that project. We handle these correctly as a standard part of managing your policy.

06
Classification code doesn’t match your actual operations
GL premiums and coverage are tied to the classification code your business is written under. A misclassified business may have a policy that isn’t structured for what it actually does. When classification doesn’t match operations, gaps surface at claim time — not before.

Why Get Your GL Through McKnight

Not all GL policies are written the same. The language matters.

General liability is one of the most commoditized products in insurance — you can get a quote online in minutes. What those online quotes don’t tell you is whether the policy you’re buying actually covers the work you do. GL policies vary significantly in how they handle exclusions, completed operations, subcontractor work, classification codes, and the types of claims most common to your industry.

We work with contractors, service businesses, retail operations, restaurants, landscaping companies, and a wide range of Texas businesses. Our team comes from business ownership backgrounds in the trades, construction, and commercial operations. We read the policy language before we place it — not after a claim reveals a gap. When you call us about GL, you’re talking to people who ask the right questions about how your business actually operates and match the coverage to the answer.

As an independent agency working with 100+ carriers, we shop the market to find the right program for your business type, industry, revenue, and risk profile. We also make sure your additional insured requirements are handled properly, your classification is accurate, and your limits match what your contracts actually require.

Same-day certificates of insurance
Need proof of GL to land a contract, start a job, or meet a lease requirement today? We turn COIs around same day, every time.

Call 817.277.6166 →

We read the policy before we place it
We verify exclusions, completed operations terms, classification codes, and additional insured language before binding — not after a claim reveals a gap.

Get a quote →

100+ carriers shopping for you
Independent means we’re not tied to one carrier’s product. We find the right GL program for your industry, operations, and risk profile.

See how we work →

FAQ

General liability questions we hear all the time.

What does general liability insurance cover?
General liability covers third-party claims for bodily injury, property damage, personal injury, and advertising injury caused by your business operations. It pays for legal defense, settlements, and judgments up to your policy limits. What it doesn’t cover: your own employees’ injuries (workers’ comp), your vehicles (commercial auto), professional errors or advice (E&O), your own property (commercial property), or alcohol-related incidents (liquor liability). GL is the foundation — other coverages address the gaps it intentionally leaves.
Is general liability insurance required in Texas?
Texas law doesn’t require general liability for most businesses — but that’s almost beside the point. Commercial landlords require it before you can sign a lease. General contractors and commercial clients require it before you can work on their property. Licensing boards in many trades require it as a condition of licensure. Operating without it doesn’t just create financial risk — it limits the contracts you can bid and the clients you can serve.
How much general liability coverage do I need?
The right limits depend on what your contracts require and what a realistic worst-case claim against your business could look like. Most commercial contracts and leases require $1M per occurrence and $2M aggregate as minimums. For businesses doing higher-risk work, working on high-value properties, or taking on larger commercial clients, higher limits or an umbrella policy may be appropriate. We help you set limits that reflect the real exposure — not just what’s convenient to quote.
What’s the difference between “per occurrence” and “aggregate” limits?
The per occurrence limit is the maximum your policy pays for any single claim. The aggregate is the maximum it pays across all claims during the policy period — typically one year. A $1M per occurrence / $2M aggregate policy pays up to $1M on any individual claim, but no more than $2M total in that year. Once the aggregate is exhausted, the policy is done for that period. Most contracts specify both numbers when listing their GL requirements.
What is completed operations coverage and do I need it?
Completed operations is the part of your GL that covers claims arising from work you already finished. If a client discovers a problem months after you completed a job and holds you responsible, completed operations is what responds. For any contractor, trade, or service business, this is essential. Some policies include it automatically; others have sub-limits or time restrictions that don’t reflect the real exposure. We verify it’s in your policy with adequate limits before we place it.
What is an “additional insured” and when do I need to add someone?
An additional insured is a person or entity extended coverage under your GL policy — typically because a contract requires it. When a GC or commercial property owner asks you to name them as additional insured, they’re asking for protection under your policy for claims arising from your work. This is standard in commercial contracting and most lease agreements. We handle additional insured endorsements as a routine part of managing your policy and can issue same-day certificates with AI status when you need them.
Does GL cover subcontractors I hire?
Your GL covers your own operations and liability — it doesn’t automatically extend to subcontractors you hire. If a sub you bring onto a job causes damage or injury without their own GL, the claim can flow back to you. Best practice is to require every subcontractor to carry their own GL and name you as additional insured. Some policies also have specific provisions or exclusions around uninsured subs — we look at how your policy handles this when building your program.
What’s the difference between an occurrence policy and a claims-made policy?
Most GL policies are occurrence-based — they cover incidents that happened during the policy period regardless of when the claim is filed. If you had coverage in 2023 and a claim is filed in 2025 for a 2023 incident, your 2023 occurrence policy responds. Claims-made policies only cover claims reported while the policy is active — more common in professional liability than standard GL. For most commercial general liability, occurrence form is the standard and the preferred structure.
Does GL cover my employees if they get hurt?
No — GL covers third parties, not your own employees. Employee injuries are a workers’ compensation exposure and GL explicitly excludes them. In Texas, workers’ comp isn’t legally required for most employers — but without it, an injured employee can sue your business directly with no cap on damages. If you have employees, workers’ comp belongs alongside GL in your program.
Is a Business Owner’s Policy (BOP) better than standalone GL?
A BOP bundles GL and commercial property into a single policy at a discounted rate — often the most cost-effective way for a small or medium business to get both coverages in place. If you have a physical location and business property worth protecting, a BOP usually makes more sense than standalone GL. If you operate without a fixed location or significant property, standalone GL may be the right fit. We’ll look at your situation and tell you which structure makes more sense.

Get Started

Let’s get your business covered with GL that actually works.

Whether you’re getting GL for the first time or reviewing a policy you already have, we’ll make sure the coverage matches how your business actually operates. No pressure. No jargon. Just straight answers.

Serving Texas businesses across DFW, Houston, San Antonio, Austin  ·  Same-day certificates available