Every business has its own needs, but you should still make sure you are covered by insurance, no matter how small your business is. In short, small business general liability insurance tends to cover things like personal liability of members and consequences associated with third-party claims for property damage or injury. You can add additional elements of medical injuries to yourself and damage to your own property.
When you review CGL policies, you will see terms like “General Aggregate Limit.” This refers to advertising or personal injuries, medical payments and/or fire damages. “Operations coverage” refers to the basic coverage provided for property damage and bodily injury due to your or an employee’s negligence.
You may also see “Product Limit and Completed Operations” depending on your line of work. This coverage includes protection for those who manufacture or sell a particular product, or are contractors who provide services. If damage occurs and your negligent product or service could be responsible, you will obviously face a lawsuit. This is a separate type of aggregate limit and claims of its nature will not reduce the Overall Aggregate Limit, although you will still be subject to limits such as the “Occurrence Limit” for each claim.
General Liability Insurance for Small Business Limits and Claims
The “Occurrence Limit” refers to the maximum amount the policy will pay for a single claim arising from your Personal Injury or Advertising/Operations/Products and Completed Operations. Each of these claims WILL DECREASE the separate aggregate limit.
Some other terms you’ll encounter include personal and advertising injury, fire damage, medical payments, bodily injury, and third-party property damage, which are self-explanatory.
Your industry will also influence the exact type of coverage you need. When looking for small business general liability insurance, see if there is any custom insurance available. Choose a company that specializes in businesses like yours and has coverage tailored to the risks common in your particular field. Consider the risks you are likely to face that might not be covered by a GCL or Business Owner Policy (BOP) and include those risks in your coverage.
Another very important thing to take into account is the response capacity of complaints. just get small business general liability insurance from a company that has many positive reviews, especially when it comes to response time to complaints. Claims should be easy and quick to process. One particular provider to start with is Hiscox Business Insurance. The rates are reasonable, the claims process is fast, and Hiscox offers free, instant quotes on their website.
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