A general liability policy covers many potential liabilities, from lawsuits to misunderstandings. Public liability insurance is vital to protect your assets and profits, whether your business is small or large. Unfortunately, most business insurance policies come with gaps and leave you unprotected. To find out what you’re covered for, contact an insurance agent to ask questions about your specific needs.
Coverage
General liability insurance protects against legal liabilities associated with third-party property damage. It covers things like a landscaping contractor’s stone that breaks a client’s window. Coverage is also available for products and completed operations. Products are goods manufactured or sold by a business that may cause physical injury or illness.
The premium for a general liability policy varies depending on how much a business is exposed. The bonus can be based on the company’s area, payroll, or sales volume. General liability policies are available either as stand-alone or part of a commercial business owner’s package policy. Often, small and medium-sized businesses are considered low-risk and can get a relatively inexpensive package policy. Business Owner’s Policies typically include General Liability, Property, and other coverage enhancements.
Exclusions
A general liability insurance – thimble.com policy grants coverage for bodily injury and property damage. The policy also uses exclusions to eliminate coverage for situations not covered by another policy to provide a full range. These are located in the policy’s exclusions section or as endorsements that attach to the policy as pages near the end. It’s also advisable to carefully review the policy and its exclusions to understand the full scope of coverage.
Residential work is another area in which a policy can be very restrictive. Some forms only cover damage and injury claims during the policy’s coverage period, while others may only cover the work performed before the policy was issued. Residential work is a significant component of many construction businesses, and exclusions may exclude residential work. For example, suppose a contractor has an extensive history of accidents. In that case, it is a good idea to carefully review the exclusions of the general liability policy to determine whether or not your particular business is covered.
Premium
Premium coverage varies depending on the type of coverage you require. A general liability insurance policy is designed to cover both risks.
Depending on the type of business, premium coverage will vary significantly. Premiums may range from a few hundred to several thousand dollars for a small business. Generally, premiums under a general liability insurance policy are calculated as a percentage of your gross sales or payroll. Higher revenues and payroll are often required to pay higher premiums, but larger companies can also advantage of rate discounts. This way, the insurer knows precisely how much to charge.
Business type
A general liability insurance policy covers various legal issues that your business may face, including workplace accidents, defective products, and negligence. It also covers the medical and legal expenses associated with claims resulting from accidents involving your employees, customers, or visitors. Some states require that you carry general liability insurance to obtain a business license. Still, if your business is small and does not need to face lawsuits frequently, you may find it beneficial to purchase a standalone PLI policy.
