General Liability Insurance Coverage | Progressive Commercial

Where can i get general liability insurance

General liability insurance offers a variety of coverages to protect your small business, but it doesn’t cover everything. Learning what general liability insurance covers and how much you need will give you confidence that you’re insuring your business correctly.

what does general liability insurance cover?

general liability insurance typically covers:

bodily injury and property damage liability

General liability covers business-related incidents that result in bodily injury to a third party. this could include a customer slipping and falling on her premises, or an employee accidentally dropping a toolbox on someone’s foot. Of course, this coverage only applies to non-employee injuries.

In addition, general liability protects any damage to third party property that results from your business operations. For example, a landscaper’s policy may cover a rock that is thrown from his lawnmower and breaks a client’s window.

products – completed operations

general liability insurance coverage includes liability protection for both product and completed trades exposures. products are any good that you manufacture, sell or distribute in your business. If a product causes a physical injury or illness, such as making a customer sick from undercooked food, a business can find protection under this coverage.

Alternatively, completed operations protect against faulty services or work performed by a company. a project must be fully completed for coverage to apply. For example, a client hires a plumber to install a shower drain as part of a bathroom renovation, but the plumber did not seal the drain properly and the bathroom flooded days later. The plumber’s general liability policy may cover up to his limits of liability for faulty workmanship since the incident occurred after he left the premises.

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personal and publicity damages

Not all injuries are physical. any written or verbal communication that causes harm may also be covered by your general liability policy. this encompasses libel, slander, malicious mischief, and copyright infringement, to name a few. For example, a small retail business suffers a decline in business after a local competitor spreads a rumor about poor customer service. The small business owner can sue the competitor for personal and advertising damages for harming his reputation and profitability.

medical payments

Medical payments cover all non-employee medical or funeral expenses for which your company is responsible. of course, your coverage depends on your selected limits. for example, a shelf falls on a customer while they are shopping for groceries. His medical expenses total $10,000, but the grocer’s liability insurance covers only $5,000 for medical payments. in this case, the store would be responsible for paying the remaining $5,000 out of pocket.

damage to facilities rented to you

Liability coverage generally includes coverage for any damage to land, buildings or structures not owned by you. the insured, or their company, must be legally responsible for the damage for the coverage to apply. For example, a local restaurant rents a property that burns down because a negligent employee left a frying pan unattended. General liability could cover damage since the company caused the fire. conversely, this coverage would not apply if lightning started the fire.

what general liability does not cover

You may have additional insurance needs that are not covered by general liability insurance. there are many other products available to protect your business. here is a short list:

  • business owned property: protected along with other equipment and property under a business owner’s policy (bop).
  • Employee Injuries – Coverage for your employees is mandatory in most states and is only available under workers’ compensation.
  • professional errors: If your company provides a service or advice, you may want to consider professional liability insurance.
  • Commercial Vehicles: Vehicles used for business are covered by a commercial auto policy. a personal auto policy will not cover work-related incidents.
  • how much coverage do you need?

    The amount of commercial liability insurance coverage you need depends on:

    • your risk exposure
    • contractual requirements
    • Generally, the higher your risk, the more coverage you’ll need. In addition, certain employers or clients may require you to have specific general liability coverage limits before allowing you to work with them. contracts commonly require a $1 million policy per occurrence. this means that your insurance company will pay up to $1 million for a single incident that is covered by your general liability policy.

      Additional coverage options may be available depending on your insurance carrier. A great way to find out is to talk to a licensed professional who can provide general liability insurance coverage options and prices for your specific situation.

      more information

      • what is general liability?
      • cost of general liability insurance
      • general liability vs. professional liability
      • Benefits of Commercial General Liability Insurance
      • what is the difference between a claim made and a claim? form of coverage of occurrence?

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