General liability insurance
What is general liability insurance?
General liability insurance covers your business for a variety of liability exposures. Every business needs commercial general liability coverage for their business. Commercial general liability includes coverage for 4 different elements:
- Premises coverage provides liability coverage for bodily injury or property damage to a 3rd party (in most cases customers) as a result of a condition of or arising out of the use of the premises.
- Operations coverage provides liability coverage for bodily injury or property damage to a 3rd party as a result of business operation either on or away from the premises where business is conducted.
- Products coverage provides liability coverage for the companies who manufacture, sell, and/or distribute products. Restaurants and others in the food industry are also included in this.
- Completed Operations coverage provides liability coverage for businesses who complete their business operations away from the premises they own, rent, or control.
Insured contracts can include leases, easement agreements, sidetrack agreements, contracts with municipalities required by ordinance, elevator maintenance agreements, contract in which the named insured assumes the liability of another party.
Commercial general liability coverages
Commercial General Liability also includes 3 types of coverage:
Bodily Injury or Property Damage Liability, which provides coverage for bodily injury or property damage to others arising out of the business’s premises or operations.
Personal and Advertising Injury Liability, which provides coverage for personal and advertising injury to others for which the business is liable. Personal and advertising injury includes slander (spoken), libel (written), false arrest, and invasion of privacy.
Medical Payments, which provides coverage for medical payments to others without regard to fault.
Supplementary Payments are paid in addition to the liability limits and covers such items as defense costs, bonds, first aid, loss of earnings, expenses, and post-judgement interest.
There are 2 main types of Commercial General Liability limits:
- Per Occurrence Limit is the most that will be paid for the sum of damages under the applicable coverages for any one occurrence.
- Aggregate Limit is the most that will be paid out for the sum of applicable coverages during any one specific policy period.
Commercial umbrella liability insurance
Commercial umbrella liability insurance in an optional coverage in addition to general liability insurance designed as catastrophic protection to provide very large limits of coverage for larger exposures or damages not covered by other insurance. It requires that certain underlying coverages and coverage limits be maintained.