Key Takeaways
Fall creates unique business exposures. Wet leaves, icy sidewalks, and crowded holiday events can lead to costly injury or property damage claims.
General liability coverage protects your finances. It helps cover medical bills, legal fees, and settlements when your business is found responsible for harm or loss.
Lawsuits carry real financial impact. Small businesses face roughly $160 billion in annual tort costs, with typical litigation expenses ranging from $50,000 – $200,000 per case.
Layered protection builds long-term security. Adding cyber, professional, or commercial umbrella insurance helps safeguard your operations through every season.
Understanding Fall Liability Risks for Small Businesses
Holiday displays, sidewalk sales, and company events make fall one of the busiest times of year for small businesses. But while most owners focus on protecting their storefronts and merchandise, the real risks often lurk elsewhere. The scariest threats aren’t broken windows or burst pipes but liability claims that can follow your business long after the decorations come down.
From slippery walkways to seasonal decorations, these hazards can easily lead to accidents, property damage, or costly lawsuits if you’re not prepared. Taking a few proactive steps now can protect your business well beyond the fall season.
Why Fall Is a Great Time to Review Your Insurance Coverage
For many businesses, autumn means larger crowds, more events, and increased online sales, all of which come with added risk.
Seasonal activities often introduce new exposures. If a customer slips on wet leaves outside your storefront or an employee accidentally shares copyrighted images in your holiday marketing campaign, you could be at risk. These mishaps may sound small, but they can and do lead to costly lawsuits.
That’s where
general liability insurance comes in. It helps cover medical bills, legal fees, and settlements when your business is found responsible for injury or damage, especially in common scenarios like these.
Slips, Trips, and Icy Sidewalks
When temperatures drop, damp leaves and early frost can quickly turn entryways into hazards. The average premises-liability verdict in the U.S.
exceeds $640,000, with a median around $98,000. Even a single fall-related lawsuit can strain a small business without proper liability coverage.
Holiday Crowds and Black Friday Liability
Seasonal sales and extended hours mean higher foot traffic—and higher risk. During events such as Black Friday or holiday pop-ups, injuries caused by overcrowding or neglected maintenance can trigger costly lawsuits.
Commercial general liability insurance and additional insurance like commercial umbrella coverage can safeguard your business from these seasonal surges in exposure.
Product Knockoffs and Advertising Theft
As the holiday retail season ramps up, so does competition—and sometimes imitation. Businesses often face copyright or trademark disputes when competitors copy product designs, holiday campaigns, or slogans.
Business liability insurance and professional liability insurance can help cover the costs of legal defense if your company faces claims of intellectual-property infringement or needs to pursue damages against counterfeiters.
What Does General Liability Insurance Cover?
Even the most careful small business owners can face accidents or claims that fall outside their control. Commercial general liability insurance coverage (CGL) provides financial protection when your business causes—or is accused of causing—harm to others.
Here’s how that protection breaks down:
Bodily Injury and Property Damage
When accidents happen, general liability insurance helps cover the costs of medical expenses, repair work, and legal claims related to physical injury or property damage.
If a customer trips over decorations or your delivery driver damages a client’s property, this coverage provides the financial support your business needs to recover smoothly.
Personal and Advertising Injury
Mistakes in advertising, like using unlicensed content or a competitor’s slogan, can spark lawsuits. This coverage addresses the legal defense and potential settlements related to libel, slander, or copyright infringement.
Legal Defense and Settlement Costs
Even baseless claims can drain your resources. General liability coverage covers attorney fees, court costs, and settlement payments, allowing your business to maintain financial stability and focus on operations.
When Property Insurance Isn’t Enough
Many business owners assume commercial property insurance is enough to protect them. But while property coverage pays for physical damage like fires, storms, or theft, it doesn’t address the financial consequences of lawsuits or third-party claims.
Commercial general liability insurance provides broader protection. It safeguards your business from the financial impact of injury claims, reputational damage, and legal disputes.
The Real Cost of Liability Claims for Small Businesses
While property damage can usually be repaired, the financial fallout from a liability claim can last far longer. Recent studies show that litigation and settlement expenses for small businesses have surged sharply in the past decade.
According to the
U.S. Chamber Institute for Legal Reform (2023), small businesses account for nearly $160 billion in commercial tort costs each year, despite generating only about one-fifth of total U.S. business revenue. For companies with under $1 million in annual revenue, the per-dollar impact of lawsuits is seven times higher than that of larger firms.
And the risk is widespread:
Roughly 43 % of small businesses face a legal threat or lawsuit at least once during their lifetime.
Average litigation expenses range from $50,000 to $200,000+ per case, depending on complexity and duration.
Liability claim costs across the U.S. have increased by 57% in the past decade, driven by higher jury awards and defense costs—what insurers now call social inflation.
Even one claim can strain a company’s finances, especially during the busy holiday season when client traffic and community events increase. A well-structured business liability insurance policy helps absorb those costs and preserve your business’s financial stability.
Expanding Protection Beyond the Basics
General liability insurance is the cornerstone of a strong business insurance portfolio, but it’s rarely the only protection you need. Every business faces unique exposures that extend beyond slips and falls. A layered insurance strategy provides comprehensive coverage across your operations, including additional insurance tailored to your business’s unique exposures.
Here are additional policies that reinforce your protection:
Professional Liability Insurance
Protects against claims of negligence, missed deadlines, or errors in professional services that cause financial loss to clients.
Cyber Liability Insurance
Shields your business from data breaches, phishing scams, and cyberattacks—risks that rise during the fall and holiday e-commerce seasons.
Employment Practices Liability Insurance (EPLI)
Covers claims from employees alleging harassment, discrimination, or wrongful termination, which can spike during seasonal hiring cycles.
Commercial Umbrella Insurance
Provides an extra layer of business liability insurance above the limits of your existing policies. If your general liability or commercial auto limits are exhausted during a large claim or lawsuit, commercial umbrella insurance can help cover the costs that exceed those limits.
This type of coverage offers peace of mind when operating in higher-risk industries or hosting public events.
Why Choose Pepper, Johnstone & Company
Not all insurance agencies work the same way. As an independent insurance agency, Pepper, Johnstone & Company partners with top-rated insurance companies like Travelers, The Hartford, and Chubb to deliver customized, forward-looking solutions instead of one-size-fits-all policies.
Our consultative approach begins with a complete risk review. We identify vulnerabilities, evaluate your operations, and design a policy that balances coverage and cost efficiency. Whether you manage a single storefront or multiple locations across the country, we help you protect your business with confidence—today and through every season.
Frequently Asked Questions About General Liability Insurance
Before selecting coverage, it helps to understand what general liability insurance can—and can’t—do for your business. Here are answers to the most common questions small business owners ask:
Does business liability insurance cover employees?
Not exactly—but it can cover what your employees do. General liability insurance doesn’t pay for injuries employees suffer themselves (that’s what workers’ compensation is for). However, if an employee’s actions cause harm to a third party—say, damaging a client’s property or even physically injuring a customer—your business could be held liable.
In those cases, your general liability insurance coverage may help cover the costs of legal defense, medical expenses, or settlements, depending on the circumstances and exclusions in your policy. For intentional or criminal acts, like an employee assaulting someone, coverage is far less likely—but if your business is sued because you failed to supervise or train that employee properly, liability protection can still apply.
How much does general liability insurance cost for small businesses?
Costs vary by industry, location, and claims history. On average, small business owners pay between $400 and $1,000 per year for basic coverage.
Do I need both property and liability insurance?
Yes. Property insurance protects your physical assets, while liability insurance protects against financial loss from lawsuits or injury claims.
The right type of coverage depends on your business’s size, industry, and risk exposure, but every company benefits from having general liability protection at its foundation.
Protect Your Business Before the Season Ends
Accidents don’t wait for the holidays. Before the next busy season arrives, make sure your small business insurance coverage is comprehensive and current.
Call
866-381-5821 or
request a general liability insurance quote online from the experienced insurance agents at Pepper, Johnstone & Company—your trusted partner in protecting small businesses nationwide.