General Liability Insurance Coverage

You've worked hard to build the business you are proud to own and operate today. You strive to build strong relationships with your clients, and to be a responsible citizen. But no matter how careful and thoughtful you may be, one small mistake or mishap can result in an ugly legal battle.

Unfortunately, ours is a litigious society, and it seems as though people are quick to file a lawsuit for the slightest transgression. Even if you are right, it can cost an extensive amount of time and money to get wrapped up in legal battles. This is why general liability insurance coverage is so essential to protect your business and your livelihood.

In the event that your business is sued for any reason, liability insurance can protect the assets of the business. This type of coverage can be purchased separately, as a stand-alone policy, or it can be incorporated into your portfolio of policies. Coverage is relatively low for the bundled option, so you'll want to arrange for a separate policy to provide comprehensive coverage.

How to Determine How Much

Perhaps you're wondering, "How much general liability insurance coverage do I really need?" This is an excellent question, and requires you to consider several factors. Perceived risk is the best place to start - take into consideration what kind of work you perform and what sort of risks are associated with that type of work. Construction is generally considered a high-risk industry, because of the use of heavy machinery and the many possibilities of error or injury.

The next factor to consider is the state laws and local regulations for the state or states where you do business. If your state has a history of awarding high damage amounts to plaintiffs, you would be wise to increase your coverage. There's no need for you to personally research which states are affected, as your insurance broker will be able to answer this question for you.

How Does General Liability Insurance Coverage Work?

If you are appropriately covered for general liability, your insurance company will pay all legal costs for any lawsuit brought against your business for any covered reason. Generally, this includes bodily injury, property damage, personal injury and advertising injury. Advertising injury refers to a lawsuit brought forth because the plaintiff claims the defendant used false advertising or slandered the plaintiff, and this resulted in some sort of tangible loss. Bodily damage typically refers to "slip and fall" incidents, and any other type of injury that does not involve a truck (which would be covered under auto or truck insurance).

In addition to legal fees, the insurance carrier would also pay any compensatory or general damages. If punitive damages are assessed, these are not covered by any insurance, and must be paid by the defendant.

If you arrange for general liability insurance coverage, your policy will clearly state the maximum amount of coverage provided, and $1 million is a typical max on this type of policy. The policy will also state the maximum coverage per occurrence (and per time period).

N o matter what kind of business you may be in, if you are a contractor, it's smart to protect your livelihood with general liability insurance coverage. Don't worry if you don't understand all the complex nuances of the different types of coverage - fortunately, you can rely on the insurance professionals at contractorsinsurance.org to assist you with all your insurance needs.

No matter what type of contractor's insurance you need, from general liability insurance coverage to inland marine insurance, we can help you find excellent coverage for the right price. For more information, click for a free quote or call (516) 294-1072 today.