Does General Liability Cover Legal Fees?
Often, defense costs for a covered suit are part of the insurer’s duty to defend. Check which expenses qualify and whether they reduce the policy limit.
The ISO CGL specimen describes a duty to defend certain suits seeking damages because of covered bodily injury, property damage, or personal and advertising injury. It separately lists supplementary payments, including specified litigation expenses, subject to conditions. This does not mean every attorney bill related to the business is reimbursed: a dispute must trigger the relevant coverage, and expenses may need insurer approval or fall under specific policy provisions.
Ask whether defense costs are within or in addition to limits, whether counsel is selected or approved by the insurer, and how deductibles or self-insured retentions work. Check the supplementary-payments section and any endorsement changing it. If a contract separately makes you responsible for another party’s attorney fees, review the contractual-liability provision; that promise may not be insured in the same way as defense of your own covered suit.
Related Coverage
Sources
- Commercial general liability insurance. Insurance Information Institute; What commercial general liability insurance covers; Coverage A, B and C; Additional liability coverages to consider. Accessed 2026-09-25.
- Commercial Insurance Guide. California Department of Insurance; Commercial General Liability; Commercial Automobile; Workers Compensation; Commercial Property. Accessed 2026-09-25.
- Commercial General Liability Coverage Form, CG 00 01 12 07. ISO; specimen hosted by Hiscox; Coverage A I.A pp.1–5; Coverage B I.B pp.6–7; Who Is An Insured II pp.9–10; Limits III p.10; Conditions IV pp.10–12; Definitions V pp.12–16. Accessed 2026-09-25.
