Frequently Asked Questions About
General Liability Insurance FAQ
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
General Liability Insurance FAQ
General Liability Insurance FAQ. Are you familiar with commercial general liability insurance and all the ways it can benefit your small business?
Read the general liability insurance FAQ for succinct answers to frequently asked questions about this type of insurance coverage and the protection it affords.
Carrying adequate general liability insurance FAQ to protect your business isn't an option – it's your responsibility, and a must if you want to make sure that you don't get put in a position where you have to pay money out of pocket to cover expenses associated with a loss.
The general liability insurance FAQ answers frequently asked questions about how GL helps protect businesses from legal risks, coverages, costs and more.
What Is General Liability Insurance?
Also referred to as commercial general liability insurance, it refers to insurance that only covers third party lawsuits i.e. any lawsuit that involves costs incurred to treat injuries sustained in a business property or to cover any property that may be damaged by a particular business. In this context, the cover only extends to third parties i.e. anyone who is not employed by the insured or business.
What Does General Liability Insurance Cover?
At the core, general liability insurance covers the finances required to investigate any claim brought about by a third party and any funds required to defend against any lawsuits should they be deemed legitimate. This includes witness fees, attorney fees, court costs, punitive damages and settlements. In certain instances, the cover may extend to a third party's immediate medical expenses and may also cover the expenses needed to repair or replace any of the party's property.
For example, if a fire in your office injures a non-staff member who happened to be visiting a colleague at that time. As the insured, you can claim the general liability policy to defend the business against costly litigation.
Are Professional Liability Insurance and General Liability Insurance Identical?
While it's true that both policies are geared towards safeguarding against third party suits, they do not share any other similarities. Effectively, you need both to safeguard your business. Professional liability insurance will shield advice providing employees from bearing the full costs of litigation from external parties as well as any punitive damages in the event the said suit is found to be valid. The policy, however, does not take any responsibility for damaged property or physical injuries hence the need for GL Insurance.
Is Cyber Liability Insurance A Part of General Liability Insurance?
General liability insurance is independent of the cyber insurance policy. Clients who require a liability cover for a data breach can have a clause added to their Professional liability coverage (Errors & Omissions policy) to meet this need.
Is Liquor Liability Insurance A Part of General Liability Insurance?
It's subjective. In some instances, a general liability policy might come paired with a limited liquor liability coverage that is enforceable provided there is no exchange of funds for the liquor. For example, lavishing staff with liquor at an office party makes any liquor liability claim valid. However, if a client wishes to open a winery or any establishment that will be involved in the sale of alcohol then a separate liquor liability cover is required.
Is Product Liability Coverage A Part of General Liability Insurance?
This too is subjective. While most GL coverage is inclusive of product liability coverage, the extent of the coverage varies depending on the product. Clients with an incorporated product liability coverage can protect their businesses from any claims of physical harm by their product or service. In such instances, the GL cover will cater for any resulting legal expenses.
Is Personal and Advertising Injury Coverage A Part of General Liability Insurance?
In general – yes. Although there are some exceptions, many GL policies do include lawsuits pertaining to advertising injuries such as those dealing with malicious prosecution, unlawful evictions, and copyright infringement e.t.c. Advertising injuries is one of the few non-physical categories that GL policies cover.
Is Contract Liability Coverage Included In General Liability Insurance?
Yes. Many commercial general liability policies provide a form of contract liability cover that can be claimed should any of your clients' customers file a dispute claiming a breach of agreed terms and now seek punitive damages as compensation.
Is General Liability Insurance Expensive?
General liability insurance coverage is different for each business and varies depending on unique factors associated with the insurer and the insured e.g. the size of the insured's company, the location of the business, the industry it operates in e.t.c. The most reliable way of finding cost effective coverage is by shopping for rates and doing a comparison.
General Liability Insurance FAQ
These are some of the most frequently asked questions about general liability insurance. We hope that this general liability insurance FAQ helped provide you with useful information.
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Get useful tips and information about how much commercial insurance costs, small business risks and exposures, how insurance regulations effect your businesses' and detailed descriptions of coverages and exclusions and more. Most small businesses need to buy the following four types of insurance at a minimum to cover their operations from every day risks:
Property Insurance: This policy covers a business if the property used in the business is damaged or stolen as the result of common perils like fire or theft. Commercial property insurance covers the buildings, structures and also business personal property - which includes furniture, inventory, raw materials, machinery, computers and other items.
Liability Insurance: Any company can be sued. Slip-and fall lawsuits are very common and be costly. Customers can claim you injured them or damaged their property - and lawsuits are very expensive. Commercial liability insurance pays damages and can include attorney's fees and other legal expenses. It also ca pay for the medical bills of injured third parties
Commercial Auto Insurance: For vehicles owned by the business. Commercial auto insurance pays bodily injury or property damage costs for which the business is found liable - up the the policy limits for liability and property damage.
Workers Compensation Insurance: In almost every state employers must provide workers comp when there are W2 employees. Workers compensation pays for the medical care of employees and can replace a portion of lost wages - regardless of who was at fault for the injuries.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.