General Liability Insurance

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What is General Liability Insurance?

During day to day operations you and your employees will be interacting with customers, clients, vendors and contractors to name a few. Any of them could get injured or suffer a loss and file a lawsuit against you. 

Put simply, general liability insurance protects your company from some of the fundamental risks that come with running a small business. Almost all companies and contracts take out this policy as it protects them against some of the most common claims businesses face like bodily injury, associated medical costs and damage to property that results from you business’s operations.

GL will cover a wide range of risks by paying for the costs of litigation as well as restitution for the injury. These costs can include court-awarded damages, settlements, and medical costs. Lastly it can cover claims related to false or misleading advertising which can include libel, slander or copyright infringement.

Do I need General Liability Insurance?

Almost every business owner or contractor will benefit from a general liability policy. If you’re not sure if it’s necessary for your business, we’ve created a checklist
  • You represent your customers or clients in any capacity
  • You or your employees visit client offices, co-working spaces, or host clients for meetings
  • You use a clients property or equipment
  • Members of the public or customer can enter your business location
  • Your clients or vendors require you to have proof of general liability coverage in a contract
  • You use third part locations for business operations

What does General Liability Insurance cover?

The types of claims can vary widely due to its “general” nature, but here are a few examples of how it can protect your business. Please note that each policy is different and some addons may be necessary depending on your business.
Claim Type
Definition
Example
Bodily injury (operations) ‘Slip and fall’ and other bodily injury claims occurring at the office or job site. A delivery driver holds a bakery responsible after he slips on flour on the floor of the kitchen, falling and breaking his tailbone. He sues the bakery for $75,000 in medical expenses, lost wages and other costs.
Bodily injury (product) Bodily injury arising out of the use of the insured company’s product. A small toy that is packed in each box a shoe company sold was swallowed by a child, temporarily blocking her airway. The child fully recovered from the injury but the parents sued for medical expenses and various other costs, alleging the safety precautions taken by the company were inadequate as exemplified by a lack of a “choking hazard” warning on the packaging.
Property damage Damaging property that belongs to someone else in the course of conducting business. Damage to rented office space. A contractor renovating a house is knocking down a wall when he realizes that he forgot to turn off the water line. The water that floods out of the broken pipe floods the entire first floor of the house before it could be shut off, amounting in over $150,000 in property damage.
Advertising & Personal injury where a third party alleges trademark or copyright infringement in your advertisement. Or libel, slander, invasion of privacy and false arrest.

Bodily injury (operations)

Bodily injury (operations)

What It Covers

‘Slip and fall’ and other bodily injury claims occurring at the office or job site.

Why you need it

A delivery driver holds a bakery responsible after he slips on flour on the floor of the kitchen, falling and breaking his tailbone. He sues the bakery for $75,000 in medical expenses, lost wages and other costs.

Bodily injury (product)

Bodily injury (product)

What It Covers

Bodily injury arising out of the use of the insured company’s product.

Why you need it

A small toy that is packed in each box a shoe company sold was swallowed by a child, temporarily blocking her airway. The child fully recovered from the injury but the parents sued for medical expenses and various other costs, alleging the safety precautions taken by the company were inadequate as exemplified by a lack of a “choking hazard” warning on the packaging.

Property damage

Property damage

What It Covers

Damaging property that belongs to someone else in the course of conducting business. Damage to rented office space.

Why you need it

A contractor renovating a house is knocking down a wall when he realizes that he forgot to turn off the water line. The water that floods out of the broken pipe floods the entire first floor of the house before it could be shut off, amounting in over $150,000 in property damage.

Advertising & Personal injury

Advertising & Personal injury

What It Covers

where a third party alleges trademark or copyright infringement in your advertisement. Or libel, slander, invasion of privacy and false arrest.

How much does General Liability Insurance cost?

Underwriters consider a number of factors when calculating general liability quotes such as:
  • Location
  • Annual revenue
  • Type of business

General Liability Insurance FAQ's?

What’s a waiver of subrogation?

The policy that is “primary and non-contributory” must:pay before other applicable policies (primary); and without seeking contribution from other policies that also claim to be primary (noncontributory).Landlords, vendors, customers and other contract counterparties will ask you to endorse your General Liability policy as such so they can rest assured that their policy limits aren’t at risk if there’s a claim against both of you.

How long does it take to get a quote?

The underwriting process typically takes about a week. This is often shorter, but can also take longer depending on the complexity of your business and the coverage(s) being requested, but as long as your submission is complete, we should be able to expedite your quotes. Your Account Executive should be able to give you a more accurate estimate upon review of your application.

From submitting the application, it can take between 3-7 days to receive a full proposal depending on which coverages you have applied for.

What information do I need to provide?

The required info can differ slightly depending on the coverages selected on our site, but basic company info, revenue and payroll figures, and relevant financial statements are the most important. Certain coverages will require specific documents, but once you select the coverage(s) you need, the application will prompt you for the required information

What is the difference between an Admitted and Non-Admitted carrier?

An Admitted Carrier is backed by the government. In the event the insurance company fails, the state will step in as necessary to make claim payments. With a non-admitted insurance carrier, there is no such protection.

How long until I get my policy?

Policies often take 30 to 45 days for the carrier to issue and for the state to stamp when necessary. Binders and Certificates of Insurance are issued as proof of coverage in the meantime.

What payment options exist for my professional liability policy?

Cover Small Business partners offers a range of payment options, including debit and credit card (Visa, MasterCard and American Express) payment. You can also choose to pay the full amount in one lump sum each year or pay monthly.

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