What is it General Liability Insurance?
If you can only afford one type of insurance, General Liability is the insurance to purchase. General liability insurance covers damage to your property or injury sustained by a person on your property (not an employee-See Worker’s Compensation).
Why do I need General Liability Insurance?
General liability insurance protects your business if you’re sued for an:
- Bodily injury
- Property damage
- Claims of negligence
General liability insurance covers not only the settlement payments or judgments a business might have to pay if sued, but typically cover the legal costs involved in most lawsuits. If someone comes onto your property and is hurt, that injury claim will be covered under your general liability insurance. One of the most common accidents is a vehicle accident. Imagine one of your company trucks gets into an accident, injures the other driver, and damages their vehicle and yours. That’s covered under your general liability insurance. If your business manufactures products, general liability insurance is essential. Let’s say you get sued in a class action law suit because your product unintentionally hurt someone. That’s covered in your general liability insurance.
How much do I need?
If you’re just starting out, the amount of coverage you need will usually be dictated by your landlord or vendors that you do business with. When you move into an office, retail store, or warehouse, usually the landlord will ask you to purchase a sum of coverage and a coverage aggreagate. Any single lawsuit or claim that you file will be covered up to your purchased coverage amount for that single occurrence. If you have 2 occurrences or more within a single year, the policy will cap out at the aggregate amount you purchased.
How much Coverage do Vendors want you to have?
If you do business with big businesses, they may require you to have more general liability coverage because they want to make sure that they’re protected if something happens with the products. Getting general liability coverage puts the businesses you work with and yourself at ease.
Do I Need an Additional Umbrella Policy?
Since lawsuits are often more expensive than a aggreagate cap in a general liability policy, many business owners take out an additional umbrella policy to cover the gaps in their general liability policy. The cost of an additional umbrella policy will vary depending on the scope of covered claims. Speak with ISUagent to review a policy and better understand what’s covered, the limits of that coverage, what’s included, and what additional umbrella policies may be needed depending on the specific nature of your business.
Call 916-773-3800 to speak with one of our knowledgeable ISU representatives.