Every business has its own needs, but you still want to make sure you’re covered by some insurance, no matter how small your business is. In short, small business general liability insurance tends to cover things like members’ personal liability and the consequences associated with third-party claims for property damage or injury. You can add additional items for medical injuries to yourself and damage to your property.
When you review the CGL policies, you’ll see terms like “General Aggregate Limit.” This refers to advertising or personal injury, medical payments, and/or fire damage. “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 “Completed Products and Operations Limit” 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 liable, you will obviously be facing 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 “Per Occurrence Limit” for each claim.
Small Business General Liability Insurance Limits and Claims
The “Per Occurrence Limit” refers to the maximum amount the policy will pay for a single loss arising from your Personal or Advertising Injuries / Operations / Products and Completed Operations. Each of these claims will lower the aggregate limit separately.
Some other terms you’ll come across include advertising and personal injury, fire damage, medical payments, bodily injury, and third-party property damage, which are self-explanatory.
Your industry will also play a role in 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 that are prevalent in your particular field. Consider the risks you are likely to face that may not be covered by a GCL or Business Owner’s Policy (BOP) and include those risks in your coverage.
Another very important thing to keep in mind is the ability to respond to complaints. Only get small business general liability insurance from a company that has a lot of positive reviews, especially regarding their claims turnaround time. Claims must be easy and quick to process. One particular provider to start with is Hiscox Business Insurance. Rates are fair, the claims process is fast, and Hiscox offers free, instant quotes on its website.
