If you run a business in Pennsylvania—whether it’s a construction firm in Pittsburgh or a family farm in Lancaster—having general liability insurance is one of the smartest moves you can make. While most businesses aren’t legally required to carry it, contract terms, local rules, and everyday risks make this protection essential.
This guide explains who needs coverage, what it includes, common claims, costs and coverage factors, and how to manage the claims process in Pennsylvania.
Who Needs General Liability Insurance in Pennsylvania?
Most Pennsylvania businesses are not legally required to carry general liability insurance under state law. However, many are still obligated by contracts or local codes.
Here are some examples:
Home Improvement Contractors: Must carry $50,000 in personal injury liability coverage and $50,000 in property damage coverage if they perform $5,000 or more in home improvement work annually and register with the Attorney General under the Home Improvement Consumer Protection Act.
Attorneys: Must disclose in writing to clients if they do not have professional liability insurance of at least $100,000 per occurrence and $300,000 in the aggregate per year, as required by Pennsylvania Rule of Professional Conduct 1.4(c).
Physical Therapists: Must maintain professional liability insurance in the minimum amount of $1 million per occurrence as required under section 9(b)(4) of the Physical Therapy Practice Act.
City Contracts (e.g., Philadelphia, Pittsburgh): Contractors often need coverage amounts and may need to list the city as an additional insured. Specific requirements vary by municipality.
Even if it’s not legally required, lacking coverage can cause major problems during legal disputes—or stop you from landing big contracts.
What Pennsylvania Commercial Liability Covers
A general liability policy protects your business from financial losses tied to accidents, injuries, or property damage. A standard policy usually includes:
Bodily Injury: If someone is hurt at your location, like a slip-and-fall on icy sidewalks.
Property Damage: If your business accidentally damages someone else’s property—for example, while working on-site.
Advertising and Personal Injury: Covers lawsuits related to libel, slander, or misleading ads.
Medical Payments: Pays for minor injuries without needing to prove fault.
Legal Defense Costs: Covers attorney fees, even if you’re found not liable.
Common Risks and Claims in Pennsylvania
Pennsylvania businesses face a wide range of claims. Here are some real scenarios:
Slip-and-Falls in Winter: Snow and ice lead to increased claims from November through March. Retail businesses in cities like Erie may see significant increases during winter months.
Farms with Agritourism: Lancaster-area farms hosting hayrides or petting zoos face injury risks. Farm-specific liability coverage is important for these activities.
Construction Site Accidents: Jobsite injuries involving the public can result in substantial claims. Defective work claims after a project is finished can be significant.
These risks make general liability insurance Pennsylvania coverage critical—not just optional.
Businesses often confuse general liability and workers’ comp. This guide on general liability vs. workers’ compensation explains the key differences and how both coverages work together to protect your company.
General Liability Pennsylvania Cost and Coverage Factors
Pennsylvania insurance costs vary based on several factors. What most businesses can expect to consider:
Key Cost Factors Include:
Industry Type: Different industries carry different risk levels
- Retail operations typically have lower premiums
- Food service operations typically have higher premiums
- Manufacturing and construction operations vary based on specific risks
Business Size: Employee count and revenue affect pricing
Location: Areas with higher lawsuit rates may see increased premiums
Claims History: Fewer claims typically result in lower rates
Coverage Limits: Higher limits increase premiums
Bundled Coverage: Combining general liability with cyber, property, or auto insurance may provide cost savings
Standard Coverage Limits
Most businesses carry coverage with limits such as per occurrence and aggregate amounts. Common limits include amounts like $1 million per occurrence and $2 million aggregate, though specific needs vary by business type and contractual requirements.
General Liability Insurance Claims Process in Pennsylvania
Most policies require prompt reporting if something happens. Here’s what to expect:
Notify Immediately: Report incidents as soon as possible. Waiting could affect your claim.
Gather Evidence: Take photos, gather witness statements, and keep receipts.
Adjuster Review: You’ll typically be contacted within a reasonable timeframe. The adjuster may request more information before processing.
Statute of Limitations:
- Bodily Injury: 2 years
- Property Damage: 2 years
If your insurer denies a valid claim unfairly, you may be entitled to additional damages under Pennsylvania bad faith laws.
Final Takeaway: Secure Your Coverage Now
General liability insurance protects your business when things go wrong. Even if you’re not required to carry it by law, the risks of operating without it are too high. Whether you run a retail shop in Reading, a farm in Lancaster, or a tech startup in Harrisburg, the right coverage keeps your business safe.
Here’s what to do now:
- Review contract and licensing requirements
- Determine appropriate coverage limits based on your business needs
- Consider bundling for potential savings
- Get expert help comparing carriers
Need help choosing the right plan? Call our experts at 855-718-7552
