General Liability Insurance

Why do businesses need general liability insurance?

In today's litigious society, even small mishaps can result in large lawsuits. That's why general liability insurance, along with our other commercial insurance services, such as workers' compensation insurance is a MUST HAVE for many businesses.

What does general liability insurance cover?

General liability insurance is often the first insurance option that a business owner must consider since it offers protection against the following common liability claims:

How does a business purchase general liability insurance?

General liability insurance can be purchased in two ways:

1. As part of a business owner's policy (BOP), which bundles general liability and property insurance into one policy. This is a common practice for many businesses, as it can lead to savings and other advantages. However, the downside of a BOP is that the liability coverage limits may be too low for some businesses.
2. As a stand-alone purchase. Typically this option is preferred by businesses that need more coverage than a BOP can provide, or by businesses that do not need property insurance.
   
   

How much general liability insurance coverage does a business need?

The amount of general liability insurance coverage a business needs will depend on two major factors:

1. The risk exposure of the business: Business owners should first consider the amount of risk associated with their business. This will typically depend on the industry and the nature of the work that the business does. For example, a business that manufactures heavy machinery takes on greater liability risk than a company that manufactures pillows, and will likely opt for more coverage.
2. The location of the business: Different states tend to approach liability claims & lawsuits differently. Some states are more likely to award higher damage amounts to plaintiffs typically and businesses that operate in such states will need higher amounts of coverage. Your regional broker can offer advice in this area. If you'd like to talk to someone about these considerations now, you can schedule a general liability insurance consultation with an expert from People Lease today.
   
   

How much does a general liability insurance policy cover?

General liability insurance policies always state a maximum amount that the insurer will pay during the policy period. Usually, these policies also list the maximum amount the insurer will pay per occurrence. For example, if a company has a $500,000 occurrence cap in its liability policy and it's successfully sued for $750,000, the insurer would pay $500,000 and the business would be responsible for paying $250,000.

To extend a general liability insurance policy maximum, many companies purchase commercial umbrella insurance. With commercial umbrella insurance, if a liability claim made against your business exceeds the limits of your primary liability policy, Commercial umbrella insurance can help pay the additional costs of the claim.

How can a business keep its liability insurance rates low?

Taking precautions before an accident can help keep your liability and insurance rates down. The following  precautions will go a long way toward lowering the likelihood of a liability insurance claim against your business:

• Keep your company records up-to-date.
• Get safety tips for your type of business from your insurance company.
  
  We at People Lease are happy to set up a general liability insurance consultation with you to assess your unique business situation and figure out which general liability insurance options are right for your business!