General Liability Insurance. At GeneralLiabilityInsure.com our goal is to get you the commercial general liability and business insurance you need as fast and easy as possible. We specialize in quick general liability insurance quotes, and have many options placing your small business insurance coverage. We have a fast commercial general liability insurance quote process, making binding coverage simple.
General liability insurance protects your business from bodily injury and property damage lawsuits with rates starting at $27/mo. Get a fast commercial general liability insurance quote and your certificate of insurance today.
General Liability Insurance. You don't have any control over the ultimate cost of injuries to a person injured because of your operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person. The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries.
Do you have enough money or property you can sell to pay for such a loss? And, if you do, should you use it that way? Commercial general liability insurance (CGL) is designed to help you protect your business, assets and future income.
Your business can opt to purchase a general liability insurance policy on its own or as part of a business owner's policy (BOP) or commercial package policy (CPP), which are insurance policies that bundle both property and liability under a single umbrella. However, if your business has a package or business owner's policy, it's still a good idea to review the coverage for liability that your policy affords, and if necessary, add an excess liability policy as a separate insurance product to make sure protection is in place.
This is usually the first question on a business owners mind. In general, the main factors are the business':
Please see, "How Much Does General Liability Insurance Cost?" for a deeper dive into how much a general liability policy costs.
If you're a business owner in or thinking of starting a small business, you're probably aware that you need small business general liability insurance, but maybe you're somewhat confused about what it is, what it covers, and how much you need to fully protect yourself and your business from potential liabilities.
What is general business liability insurance? What does it do? Why do you need it? How much should you buy? Read on to discover more about this essential insurance for your business and find out how to get the right level of coverage for your particular needs.
General liability insurance protects your business in several ways:
The bodily injury or property damage must be caused by an occurrence, which is defined as an accident, including continuous or repeated exposure to substantially the same harmful conditions, and it must occur in the covered territory. Each of these coverages is subject to certain policy exclusions, conditions, and definitions.
The general liability policy covers the cost of defending the insurance company or party against the charges that are named in the lawsuit. This can include attorney fees, costs for investigation, and other related legal expenses. The costs to the defense can be a huge amount even when the defense is not responsible for the damages. The indemnity, or payment of damages, and the defense obligations are the two parts of a general liability policy.
The limits of insurance are the most paid, regardless of the number of insureds, claims made, suits brought, or persons or organizations that make claims or bring suits. The amount of coverage that your PA business needs depends on your individual business model and the amount of risk associated with your business.
For instance, a consultant or a web designer may need less coverage than a roofer or a contractor. The location of your business also plays a key role in determining your coverage needs. For instance, if you live in a state that has a tendency to award large amounts of damages to personal injury claimants (California, New York etc.), then you may want to beef up your liability policy.
Like a traditional insurance plan, a general liability policy pays for covered claims up to a specified limit. The most common general liability policy is a $1,000,000 / $2,000,000 policy. This means:
For instance, if your business is sued for injury due to a hazard on the worksite (people are hurt on your jobsite), a policy may cover the medical costs to the injured party along with a set amount for your legal fees. If your business has a liability policy with a $1,000,000 per claim limit, and you're sued for $700,000 with attorney fees amounting to around $100,000, then your policy is sufficient to cover your loss:
However, in the same scenario, if you're sued for $950,000, and you have attorney fees of $100,000, then you may need to come up with an additional $50,000 to cover the loss:
This is why it makes sense to purchase more liability insurance than you think you need; better to be safe than sorry when you're putting your personal assets and your business at risk. Excess insurance is always preferable to inadequate insurance.
Every general liability insurance coverage form or policy has certain exclusions and limitations. This is because only specific types of businesses need the coverage or the risk or exposure to loss is not considered insurable for some reason. Some bodily injury and property damage liability exclusions are:
Loss exposures is a term that refers to any property, circumstances, activity, and events that can cause an insured loss. This general liability exposure is usually broken down into four separate groups:
Do some industry research before buying your policy, and remember that some clients may require that you carry a particular amount of general liability insurance coverage before you can even work for them. Consult with your agent to find out how much is enough, and if you already have liability insurance, if it's enough to protect you.
Some states require that all businesses that have employees pay into the state disability insurance fund and workers compensation insurance fund, and some require that general liability is purchased as well. In addition, you may need: