The Most Overlooked Benefit of General Liability Insurance: Defense Costs

Many business owners think of their General Liability (GL) policy as coverage for when they have to pay a claim. But what often gets overlooked is one of the most valuable aspects: your defense costs.

If you're sued—whether it's a valid claim or completely frivolous—your GL policy provides legal defense that can easily cost tens or even hundreds of thousands of dollars. Without this protection, even a lawsuit you ultimately win could cripple your business financially.

Here’s why this matters:

• Attorney Fees Add Up Fast – Hiring a defense lawyer costs hundreds per hour, and complex cases can drag on for months or years.

• Frivolous Lawsuits Still Require a Defense – Just because a claim has no merit doesn’t mean you won’t have to fight it in court.

• Settlements & Judgments Aren’t the Only Costs – Even if you never pay a dime in damages, the cost of defending yourself can be just as significant.

Your insurance company has a vested interest in protecting you—and will hire legal experts to defend your business, often without reducing your policy limits.

If you’re only looking at the liability limits on your policy but not considering the defense coverage, you might be missing the biggest financial safeguard in your policy.

Have you ever been involved in a claim where the legal defense was the biggest factor? Drop a comment or reach out—I’d love to hear your experience.