General Liability Insurance | Get a Free Quote |
Overview | Comprehensive general liability coverage insures a business against accidents and injury that might happen on its premises, as well as exposures related to its products. It will protect you from payments for bodily injury or property damage to a third party, for medical expenses accruing to the underlying incident, for the cost of defending lawsuits including investigations and settlements, and for any bonds or judgments required during an appeal procedure. No matter how diligently you remove all possible hazards from your business, you could be sued successfully for accidents resulting from simply the carelessness of a customer. General liability insurance is your last line of defense against devastating claims for things over which you may have little or no control. |
Amount of Coverage | How much liability coverage do you need? Generally, experts say, $2 million to $3 million of liability insurance should be plenty. The good news is that liability insurance isn�t priced on a dollar-for-dollar basis, so twice the coverage shouldn't be twice the price. The price you pay for coverage depends on the size of your business (measured either by square footage or by payroll) and the specific risks involved. Limitations will be akin to those on your personal auto policy; for example $100,000 per person and $300,000 per accident. |
Exclusions | One item of note with general liability insurance is that it tends to have a lot of exclusions. Be sure to make sure you understand exactly what your policy does and doesn't cover. You may want to purchase additional liability policies to cover specific concerns. For example, many consultants purchase �errors and omissions liability,� which protects them in case they are sued for damages resulting from a mistake in their work. Companies with a board of directors may also want to consider �directors and officers� liability� (D&O). This type of insurance protects top executives against personal financial responsibility due to actions taken by the company. |
