General Liability Insurance

Commercial General Liability insurance is an insurance policy that will cover any claim coming from a liability claim due to some sort of injury or damage which is caused by negligence or some form of omission during performance of his/her duties or business. Owning a business has a lot of responsibility and requires protection to keep the business from being sued for personal or professional reasons.

According to Bizstats.com, over 78% of all US businesses are doing businesses as a partnership or a sole proprietorship. For many owners, this puts the businesses and personal liabilities at risk. Having a business liability policy in place protects you and your business from financial disaster. Covered liability claims include bodily injury, personal injury, property damage, and advertising injury which is damage from slander or false advertising claims. Also covered are compensatory and general damages. However, one key note is that punitive damages are not covered under this type of policy because they are generally classified to be punishment for intentional acts.

Some business owners operate under the misconception that a limited liability company (LLC) or an incorporated company protects the owner from personal liability and the liability insurance is not necessary. However, the liability can fall on you personally if you have:

1. Signed a personal guarantee for a loan

2. Personally injured someone

3. Your actions have been deemed to be illegal or irresponsible

4. You have not operated your business

Our agents are highly skilled in assessing your business liability needs and want to work in helping you protect your assets. Some of key factors that they will be looking at when calculating the proper amount of coverage for their business:

1. Perceived risk – A look at the type of business that you are operating and any potential or perceived risks that might be confronted with at some time in the future. For example, a company that manufactures construction vehicles would be at greater risk than a company that manufactures paper plates.

2. Limits – This refers to the maximum amount of payout the insurer would be paying on a claim, so it essential that you and your agent take a detailed look at the exposure your business has and assesses the occurrence cap at an amount that will safely insure you.

3. Exclusions – Items that generally are not covered under the liability coverage. Your agent will be well-versed in explaining to you type of insurance coverage that your business has and which particular items will not be covered.

4. Deductibles – This is the part of the claim that you will be responsible for and paying out-of-pocket before the insurance starts to pay. Most policies that are offered will have no deductible, however, if you are a small business owner, with very little risk, you can slash the cost of your insurance by requesting a deductible.

5. The state in which your business operates – the key item in which state your business resides if there is a history of plaintiffs being awarded high damage amounts. In this case, an agent will guide you in the proper amount of coverage given the nature of amounts awarded in your particular state.

An example of a business liability coverage is if a company has a $1 million policy and is sued for $1.1 million, the business would be responsible for paying the $100,000. To successfully cover these type of situations, a Copeland Insurance Group agent can advise you to carry an umbrella liability coverage, which essentially will cover where the general liability coverage ends. The umbrella coverage not only picks up where the general liability ends, but can cover other liabilities that may not be in the standard liability policy.