A CGL (commercial general liability) policy covers your business against third-party claims for bodily injury, property damage and related legal costs. It excludes professional errors and employee injuries. Small businesses pay an average of $101 per month ($1,214 annually), though the cost ranges widely by industry risk, revenue and the limits you choose.
This guide covers what the cover includes, where it stops, how limits and policy triggers work, and what drives the price. It also shows where a broker fits in. The cost figures are US benchmarks, not Australian premiums.
What is comprehensive general liability insurance (CGL)?
Comprehensive general liability insurance is cover for claims made against your business by people outside it. If a customer is injured on your premises, or your work damages a client's property, the cover responds to the claim and the legal costs that follow, subject to the policy terms.
You will see the cover called by two names: "comprehensive general liability" and "commercial general liability". The abbreviation CGL is used for both. People use the two names for the same type of policy, so check the policy wording rather than the label.
Two ideas sit at the centre of the cover:
- Bodily injury: physical harm to a third party, such as a visitor who slips in your shop.
- Property damage: loss of, or damage to, property that belongs to someone else.
In Australia, this cover is often sold under the name public liability, with products liability added. The labels differ. The risk it addresses is the same.
What is covered under a CGL policy?
A CGL policy typically responds to the third-party risks below. Exact terms vary by insurer, so read the schedule and wording before you rely on any item.
- Injury to third parties: customers, visitors and members of the public hurt because of your business activity.
- Damage to their property: a client's floor, equipment or belongings damaged by you or your staff.
- Legal defence costs: solicitor and court costs of defending a covered claim, even when the claim is disputed.
- Settlements and judgments: amounts you become legally liable to pay for a covered claim, up to your limit.
On the comprehensive general liability insurance vs commercial general liability question, the gap is mostly one of labels. The word "comprehensive" can mislead. No liability policy covers everything, which is why the exclusions matter as much as the cover.
For a deeper look at choosing the right sums insured, see this guide to general liability limits.
What does a CGL policy not cover?
The important question is not what the policy covers. It is what falls outside it. CGL deals with third-party injury and damage. It does not replace other policies, so do not treat it as a catch-all.
Common exclusions include:
- Professional liability: advice, design or service errors need professional indemnity cover.
- Employee injuries: injuries to your own staff are handled through workers' compensation, not CGL.
- Your own property: damage to your premises, stock or equipment needs a separate property policy.
- Vehicles: motor accidents are generally excluded and covered through motor insurance.
- Intentional acts: deliberate damage or harm is not covered.
Directors and managers face another gap. Decisions made in running the business can lead to claims that CGL never touches. Management liability covers that exposure, and directors and officers (D&O) cover is one part of it. See management liability insurance in Australia for the detail.
How do CGL limits and policy triggers work?
Two features decide how much a CGL policy pays and when: the limits and the trigger.
Limits
Your policy schedule sets an each occurrence limit (the cap for a single event) and a general aggregate (the cap across the policy period), so confirm both figures in your wording. Standard ISO defaults typically include $2M/$2M aggregates for general and products-completed operations. Treat that as a common default, not a standard that every policy or Australian insurer follows.
| Term | What it means |
|---|---|
| Each occurrence limit | Maximum paid for any one event |
| General aggregate | Maximum paid across all claims in the policy period |
| Products-completed operations aggregate | Maximum paid for claims arising from finished work or sold products |
Claims-made vs occurrence triggers
Policies differ in what triggers a response: some key off when the injury or damage happens (occurrence), others off when the claim is made (claims-made). Check which applies in your wording. If you move from a claims-made policy to another insurer, ask about continuity so you do not create a gap.
How much does comprehensive general liability insurance cost?
Comprehensive general liability insurance cost depends mainly on your industry risk, annual revenue, claims history and the limits you choose. According to 2025 MoneyGeek data, small businesses pay an average of $101 per month ($1,214 annually) for CGL insurance. For a small business with $200,000 in annual revenue, a policy typically costs anywhere from $170 to $13,000 per year, depending on industry risk.
Those figures are US-sourced benchmarks in US dollars. Use them to see how wide the range is, not as Australian premiums.
What pushes the price up or down:
- Industry risk: a consultant pays far less than a builder working on sites.
- Revenue or payroll: more activity means more exposure.
- Limits: a higher each occurrence limit raises the premium.
- Claims history: past claims often lead to higher rates.
If you buy comprehensive general liability insurance for small business, the cheapest quote is not always the best cover. Compare limits, excesses and exclusions as well as the price.
ABS Insurance Brokers is an Australian-owned insurance brokerage that sources and arranges specialist insurance policies for builders, construction businesses, and general commercial clients. It does not publish pricing. Cover is quoted case by case through a broker, based on your trade and the limits you need.
How do premium audits change what you actually pay?
The premium on your schedule is often an estimate. Many liability policies are priced on declared revenue or payroll, and the insurer may adjust the premium after the policy year ends.
If your actual figures come in higher than you declared, you may owe an additional premium. If they come in lower, you may get a refund. Either way, the real yearly cost can differ from the first quote.
To avoid surprises:
- Declare realistic figures at the start, not the lowest you can defend.
- Keep clear records of revenue or payroll throughout the year.
- Tell your broker if the business grows or changes direction mid-term.
How do you claim, and how can a broker help you buy cover?
If something goes wrong, act quickly. The steps below are general, so follow your own policy wording.
- Notify your broker or insurer as soon as you become aware of the incident, since a claims-made policy only responds if the claim is reported while it is in force.
- Do not admit liability or agree to pay anything before the insurer has reviewed it.
- Pass on any letter of demand or legal notice immediately.
Processing times vary by insurer, so ask about them when you compare options.
A broker saves you the legwork. ABS Insurance Brokers works with you by phone or through an online quote request form, and a broker identifies the right cover through the Steadfast Network, which gives access to a wide range of insurers and products. Online comparison platforms also let small businesses compare CGL quotes from multiple carriers and buy online without speaking to an agent.
Call ABS or request a quote online. Tell us what you do, where you work and what risks worry you.
Conclusion
A CGL policy protects your business from third-party injury and property damage claims, plus the legal costs of defending them. It does not cover professional errors, your own staff or your own property. Cost depends on your industry, revenue and limits, and the final figure can shift after a premium audit.
Before you decide, check the exclusions against your real risks, confirm the limits suit your contracts, and ask how the premium is adjusted at year end.
