There are certain instances where your business is legally required to have general liability insurance. You may sign a contract with a client for work and that contract can specify that you prove you are covered. You may lease space, and your lease contract may stipulate that you retain general liability coverage while you are a tenant. If you are accredited or licensed by a professional organization or are required by your state or municipality to have a business permit, you may need to show proof that you are covered by general liability insurance in order to keep your license or permit. If you are financing a building or equipment, your lender may require GL coverage.