General Liability Insurance
What is it
Commercial General Liability Insurance pays to cover the costs of bodily injury, property and advertising damage claims made against your business.
why do i need it
General Liability Insurance is not required by state law, however not having a General Liability Insurance will expose your business to pay the potentially catastrophic costs of liability claims.
Who needs it
It makes sense for businesses to carry General Liability Insurance coverage to protect you from potential claims. Also, you may need General Liability Insurance coverage in the following situation:
- Applying for a professional license (e.g., a General contractor license).
- Signing contracts
- Requirement in a lease of property
Commercial General Liability Coverages:
General Liability insurance provides coverage for bodily injury or property damage for which the insured is legally responsible due to negligence or as required by contract. The policy also provides coverage for liability arising from personal injury and advertising injury, medical expense, accidents occurring on the premises or away from the premises and products or completed operations. In addition to these limits, the policy pays defense costs.
Personal Injury or Advertising Injury:
Personal injury refers to injury other than bodily injury, and can include false arrest, malicious prosecution, invasion of privacy and damage to reputation. Advertising injury refers to harm caused by an advertisement, such as libel or slander.
Products and Completed Operations Injury:
Product coverage is provided for damages arising from products manufactured, sold or distributed by the insured. Completed operations coverage is provided for damages that occur after the insured’s operations have been completed or an item has been built, installed or distributed for its intended use.
Pays medical expenses resulting from bodily injury caused by an accident on the premise owned or rented by the insured or when caused by the insured’s operations. Payment is made without regard to insured’s liability.
Fire Damage Limit:
Provides coverage for fire damage to rented premises caused by the insured’s negligence.
Liquor liability insurance provides coverage for bodily injury or property damage for which an insured may be held liable by causing or contributing to the intoxication of any person, furnishing alcoholic beverages to a person under the legal drinking age or under the influence of alcohol and violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages. This coverage only applies if the insured is involved in the manufacture, sale or distribution of alcoholic beverages, furnishes alcoholic beverages for a charge, or furnishes alcoholic beverages for no charge, if such activity requires a license.
Does my general liability policy cover me for bad workmanship?
No, your policy does not offer coverage for poor workmanship.
Does my general liability insurance policy cover independent contractors?
A general liability insurance policy covers you and your employees for the scope of your business operation. It does not automatically include additional independent contractors. You may have the option to add contractors to your policy on a temporary basis as an additional insured.You may also require them to purchase their own general liability coverage through a contractor’s policy listing you as an additional insured.