What is Short-Term General Liability Insurance?

Short-term general liability insurance (GLI) provides businesses with temporary coverage against third-party claims for bodily injury, property damage and advertising injury. It is ideal for businesses that need liability coverage for a specific period, such as a day, a week or a month. It’s a flexible option — especially for small businesses, freelancers and contractors who often work on one-off requests or short projects.

Short-term GLI covers a range of incidents that could result in financial losses for your business. The coverage is similar to standard GLI but tailored for temporary needs.

• Bodily injury claims: If a third party sustains an injury on your business premises, temporary business insurance covers medical expenses and legal fees. This is crucial for businesses that operate in high-risk environments or host public events.
• Property damage claims: Accidental damage to someone else’s property caused by your business operations is covered. This can include damages during a project at a client’s site.
• Advertising injury claims: This insurance also covers legal costs if your business is sued for defamation, libel or copyright infringement. This is usually relevant for businesses involved in marketing or advertising activities.
• Product liability claims: If a product you sell or manufacture causes harm, temporary liability insurance for small businesses can cover the associated claims.

Short-term liability insurance does not cover every potential risk your business might face. For instance, it excludes coverage for employee injuries — which require separate workers' compensation insurance. Additionally, professional errors or negligence are not covered, as these would need errors and omissions (E&O) or professional liability insurance. Finally, damages to your own business property are not included, meaning you would need a different policy, such as commercial property insurance, to protect your assets.

General liability insurance protects businesses from potential financial loss due to claims of bodily injury, property damage and personal or advertising injury caused by business operations. This insurance is essential because it covers the costs of legal defense, settlements and judgments, which could otherwise be financially devastating for a small business.

Additionally, short-term business insurance is often a requirement for securing contracts or leases, as it proves that your business can handle potential liabilities. Without this coverage, a single lawsuit could harm the financial stability of your business. GLI ensures that your business can continue operating even in the face of unexpected claims.

Short-term GLI is particularly beneficial for businesses that operate on a project-by-project basis or only need coverage for a limited time. Examples of businesses that may need this insurance include:

Several factors influence the cost of short-term general liability insurance. Understanding these factors can help you find the most cost-effective policy for your business needs.

• Duration of coverage: The length of time you need coverage will impact the cost. Shorter durations generally cost less, but the price per day may be higher for very brief coverage periods.
• Business type: The nature of your business and the associated risks play a significant role in determining cost. High-risk industries, such as construction, typically have higher premiums.
• Coverage limits: The amount of coverage you choose affects the price. Higher coverage limits provide more protection but come at a higher cost.
• Location: Where your business operates can influence the cost due to regional differences in risk and legal requirements. Urban areas with higher foot traffic may have higher premiums.