What is General Liability Insurance?
It is one of the most common types of small businesses insurance. General liability insurance, also called commercial general liability insurance, which protects your business in a number of ways.
For example, let's say a customer visits your location. While there, they accidentally fall and get injured – your business may be liable.
This is how business general liability insurance coverage will protect you. Regardless if you are at fault or not, general liability covers your defense costs, which can be damaging to the finances of your small business if you don't have insurance. And if you are found liable, it could pay the damage and related medical expenses, up to your policy limit. In today’s environment, every business should carry general liability insurance.
Who needs General Liability Insurance?
If you or your employees:
- Visit a client's place of work, or if the client visits yours. Any accident resulting in bodily injury could lead to a claim against you.
- If you access to a client's equipment, and you accidentally cause damage - you could be liable.
- If you write or speak about a client's business. A simple mistake could leave you open to a libel or slander claim.
- Even if you rent or use another property, you run the risk of damaging third-party locations related to business activities, e.g., rented offices, training space, conference/event locations, etc.
General Liability, commonly referred to as Business Liability or Commercial General Liability, protects your business when things go wrong. It can protect you against Bodily Injury, Property Damage, Personal Injury and Injury caused to others. It can protect you while you are performing your duties and after you’ve completed them. It can also protect the premises in which you operate as well as your operations away from your location. It can protect you against something your business did or failed to do. General Liability can protect your business against a variety of unforeseen circumstances and provide you with the protection you need to be able to continue your operation if you are faced with financial loss from a potential claim or lawsuit. Regardless of your type of business operations, you can get General Liability alone or bundle it with other coverages such as a Business Owner’s Policy (BOP).
Every business needs General Liability Insurance but Harris Insurance has years of experience in insuring the following classes throughout Florida:
- General Contractors
- Handymen/Handywomen
- Painters
- Drywall Installation and Repair
- Roofing
- Plumbing
- HVAC Service or Repair
- Carpentry/Trim Carpentry
- Cabinetry Installation
- Pressure Washing
- Electrician/Electrical Work
- Flooring/Floor Covering Installation
- Lawn Care Maintenance
- Landscaping
- Tree Trimming
- Land Clearing and Tractor Work
- Lawn Sprinkler Installation and Repair
- Excavation
- Driveway Paving and Brick Paver Installation
- Plaster/Stucco
- Glass Installation
- Pool Installation, Service, and Repair
- Welding
- Fencing
- Gutter Installation
- Janitorial Services
- Masonry Work
- Restoration Services
- Sheet Metal Work
- Insulation Installation
- Siding Installation
- Guard Rail Installation and Repair
Request a Quote for General Liability to protect your business
There are several parts to a General Liability Policy:
Coverage A) which includes Bodily Injury and Property Damage Liability and may include coverage for:
- Your Premises
- Your Operations
- Your Products
- Your Completed Operations
- Assumed Contractual Liability
- And Contingent Liability
Coverage B) which includes Personal and Advertising Injury
Coverage C) Medical payments to others
What are the descriptions of coverages in a General Liability Policy?
There are six limits which may apply differently to different coverages.
Per Occurrence – The Occurrence limit is the most that will be paid regardless of the number of insureds or claims for any one “occurrence”. This is the most the insurer will pay for damages under Coverage A – Bodily Injury and Property Damage and includes amounts paid out under Coverage C – Medical Payments
Damage to Premises rented to You – This is the most that will be paid for damage to any one premises, for any one “occurrence”.
Medical Expense – Coverage C, Medical Payments is a sublimit for medical expenses paid on your behalf and reduces Coverage A) Bodily Injury limit payable in any one “occurrence” as well as the Aggregate Limit.
General Aggregate and Products & Completed Operations Aggregate is the most that will be paid during a policy period regardless of the number of claims. Aggregate limits are reduced by the payment of claims paid.
Still not convinced that your business needs General Liability? Here are some real-life claim statistics from one of our companies, The Hartford:
- Customer slip & fall acidents account for 10% of liability claims and the average cost is $20,000
- The average cost of all customer injury claims is $35,000
- The most costly liability claim is usually reputational harm, averaging $50,000
Without General Liability Insurance, you could be expected to pay for these type of claims with your own business and personal assets. Most small businesses in America cannot survive large liability claims against them like the examples above. 4 out of 10 small businesses will experience a liability claim in the next 10 years according to this study conducted in 2015. With a more litigious society and financial hardships increasing, this number is expected to only increase.
