If you are considering purchasing a General Liability policy for your business, you need to understand the requirements, cost, and coverage of this type of insurance. Getting this type of insurance is very important for your business, as it is a backstop against unplanned events. Listed below are some of the considerations you should make when buying this type of policy. In addition, you should also be aware of any limitations associated with this policy.
Coverage
When starting a business, a general liability insurance policy is a necessary investment. This insurance protects against the risk of bodily injury and property damage caused by your business or by one of its employees. A single large claim can put your business out of business. This policy covers medical expenses and lost wages for employees injured on your property. Also, it covers your defense costs if you are sued. General liability insurance is very inexpensive and is an essential business coverage.
While purchasing general liability insurance for your business, you should also check if you need commercial umbrella insurance. Umbrella insurance policies act as an umbrella policy over your individual liability insurance policies. If you are unsure, you can ask your insurance agent for a copy of your policy. Your Certificate of Insurance will also show potential clients what you cover and how much you pay. You can contact Progressive Commercial for a general liability insurance policy today.
While purchasing general liability insurance for your business, you should also check if you need commercial umbrella insurance. Umbrella insurance policies act as an umbrella policy over your individual liability insurance policies. If you are unsure, you can ask your insurance agent for a copy of your policy. Your Certificate of Insurance will also show potential clients what you cover and how much you pay. You can contact Progressive Commercial for a general liability insurance policy today.
Cost
The cost of general liability insurance for business varies depending on the type of business you run. Office-based businesses, for example, are not likely to incur high levels of property damage or bodily injury, and their premiums will probably only increase modestly over time. In contrast, industries like restaurants and real estate may see a substantial increase in premiums when revenue increases. Luckily, you can lower the overall cost of general liability insurance by taking certain risk management steps.
The cost of general liability insurance for business depends on several factors, including the type of business you operate and the limits of coverage you choose. The limits on general liability policies are expressed in aggregate or per occurrence. The per occurrence limit is the amount that the insurer will pay for a single claim, while the aggregate limit is the maximum the insurer will pay for all claims in a given policy year. For small businesses, $1 million per occurrence and $2 million for aggregate coverage will likely be sufficient.
The cost of general liability insurance for business depends on several factors, including the type of business you operate and the limits of coverage you choose. The limits on general liability policies are expressed in aggregate or per occurrence. The per occurrence limit is the amount that the insurer will pay for a single claim, while the aggregate limit is the maximum the insurer will pay for all claims in a given policy year. For small businesses, $1 million per occurrence and $2 million for aggregate coverage will likely be sufficient.
Requirements
Many landlords require that you carry general liability insurance to protect them from lawsuits and legal expenses. Additionally, many lenders and professional organizations require that you maintain such insurance coverage. Some local governments also require proof of general liability insurance for your business. To avoid any misunderstanding, here are the common requirements for general liability insurance. Listed below are a few examples of businesses that are legally required to have this insurance. If you are unsure of your state's requirements, check with your local business officials to see what they require for your business.
Limitations
Choosing the right coverage for your general liability insurance business can be difficult because many policies come with onerous endorsements. Although different carriers apply different labels to the same forms, there are some common exclusions and endorsements you should look out for. These limitations may lead to coverage disputes and can't be removed once the policy has been issued. Be aware of the following exclusions and endorsements and negotiate them as much as possible.
Exclusions
If your business is a rental business, your policy may not cover accidents involving rented cars. The reason for this exclusion is to prevent overlap in coverage. It limits coverage to situations where a rental car owner or operator was the actual party at fault, not just the person who was driving it. The term "use" also includes the less conventional activities such as loading and unloading a vehicle. Exclusions for rental cars are common, but it is important to understand them fully.
There are several types of exclusions in general liability policies. Some are related to circumstances that are beyond the insured's control, while others are general exclusions. For example, exclusions a, b, c, d, and e are all aimed at minimizing the likelihood of coverage for non-fortunate situations. For instance, exclusion (a) does not cover intentional or negligent harm or damage, and exclusion (b) is concerned with contractually assumed liability. In addition, pollution liability (exclusion f) may arise from activities that the insured is aware of. Exclusions m, l, and n do not cover costs relating to repair or economic loss, as they are not standard among insureds.
There are several types of exclusions in general liability policies. Some are related to circumstances that are beyond the insured's control, while others are general exclusions. For example, exclusions a, b, c, d, and e are all aimed at minimizing the likelihood of coverage for non-fortunate situations. For instance, exclusion (a) does not cover intentional or negligent harm or damage, and exclusion (b) is concerned with contractually assumed liability. In addition, pollution liability (exclusion f) may arise from activities that the insured is aware of. Exclusions m, l, and n do not cover costs relating to repair or economic loss, as they are not standard among insureds.
