Liability insurance (General Liability Insurance) is one of those topics nobody wants to think about — until they need it.
Here I explain what it is, when you need it, and how much it costs for service businesses in Georgia.
What is liability insurance
In simple words: it covers damage you cause while working.
If you're cleaning and break an expensive lamp, insurance pays.
If you're mowing and a rock breaks a window, insurance pays.
If someone slips on the wet floor you left, insurance pays.
Without insurance, you pay out of pocket.
What it covers (and what it doesn't)
IT DOES cover:
- Damage to client property — You break something while working
- Injuries to third parties — Someone gets hurt because of something you did
- Legal costs — If they sue you, insurance pays the lawyer
- Advertising injury — If they accuse you of defamation or false advertising
It does NOT cover:
- Your own injuries — For that you need Workers' Compensation
- Your tools or vehicle — That's property insurance
- Poor quality work — If the client isn't satisfied with the quality
- Intentional damage — If you break something on purpose
Is it mandatory?
By law: In most cases, no. Georgia doesn't require liability insurance for most service businesses.
In practice: You almost always need it.
Situations where it's mandatory:
- Commercial contracts — Offices, buildings, and companies almost always require it
- Business license — Some counties ask for it to issue the license
- Government contracts — Any government work requires it
- Subcontracting — If you work for another contractor, they'll ask for the certificate
Situations where it's highly recommended:
- You work inside clients' homes
- You use tools that can cause damage
- You have employees (even one)
- You want larger contracts
How much it costs
For small service businesses in Georgia:
| Type of business | Approximate annual cost |
|---|---|
| Residential cleaning | $400 – $700 |
| Commercial cleaning | $500 – $1,000 |
| Landscaping / lawn care | $500 – $1,200 |
| Handyman | $400 – $800 |
| Pressure washing | $400 – $900 |
| Painting | $500 – $1,000 |
The cost depends on:
- What type of work you do
- How much you bill annually
- How many employees you have
- If you've had claims before
How to get insurance
Option 1: Local insurance agent
Look for an agent who works with small businesses. They can compare options from several companies.
Advantage: Someone explains everything and helps with claims.
Option 2: Direct online
Companies like:
- Next Insurance — nextinsurance.com
- Hiscox — hiscox.com
- Thimble — thimble.com
- Simply Business — simplybusiness.com
Advantage: You can quote and buy in minutes.
Option 3: Through your chamber of commerce
Some Latino chambers of commerce offer group insurance at better prices.
What to ask for: the important numbers
When you quote, you'll see these terms:
Per Occurrence Limit: The maximum they pay for a single incident. Typical: $1,000,000.
Aggregate Limit: The maximum they pay total in a year. Typical: $2,000,000.
Deductible: What you pay before insurance covers. Typical: $500-1,000.
For most small businesses, a $1M/$2M policy is enough.
The certificate of insurance (COI)
When you get commercial contracts, they'll ask for a "Certificate of Insurance" or COI.
It's a one-page document that proves you have insurance. Your insurance company gives it to you for free. Just ask them to send it to the client or property manager.
Common mistakes
- Not having insurance because "nothing ever happens" — When it happens, it's expensive
- Buying the cheapest without reading — Not all cover the same things. Read what's excluded.
- Not updating when you grow — If you started billing $50,000 and now bill $200,000, your insurance needs updating.
- Thinking the LLC protects you from everything — The LLC protects your personal assets. Insurance protects the business.
Summary
- What it is: Insurance that covers damage you cause while working
- How much it costs: $400-1,200/year for most service businesses
- When you need it: For commercial contracts, always. For residential, highly recommended.
- Where to get it: Local agent or online (Next, Hiscox, Thimble)
With LLC + insurance, your business is protected. What's next is getting more clients — and for that you need them to find you on Google.