General Liability Insurance: Basic Questions Answered

What is General Liability Insurance?
In layman terms, general liability insurance is primarily for businesses to protect their assets from incidents where the business causes bodily injury or property damage to others. Our society is very litigious and even a seemingly small event can lead to a large lawsuit. A business man or woman is wise to be prepared.

Who needs it?
Any business, including a home-based business, is well-advised to have some form of general liability insurance to protect themselves and their livelihood.

How is it purchased?
General liability can be purchased on its own or as a part of a package. With a package, liability and property insurance are bundled into one policy. It is best to talk with your agent here at Barker, Beck, Collins & Kronauge Agency about your specific needs.

How much coverage does your business need?
Most general liability policies start with a one million dollar limit. An umbrella policy may be purchased for higher limits.

What is the difference between General Liability Insurance and Umbrella Insurance?
General liability insurance specifies the maximum amount of coverage available in one policy period. This is called an aggregate limit. There is also a limit that is specified on a per occurrence basis.

Umbrella liability insurance, just like the name applies, is coverage on top of the underlying policies. It is issued in increments of 1 million dollars.

For example, if a business is successfully sued for $1,500,000 and the general liability limit is $1,000,000, the business is responsible for the $500,000 shortage.

Some companies choose to purchase umbrella liability insurance to cover such situations. Umbrella insurance starts where general liability coverage ends, covering payments that exceed the limits on other policies. It also provides additional coverage for liabilities that standard liability policies do not cover.

As you can see, adding general liability and umbrella insurance coverage can be wise investments for the benefit of your company and your long-term livelihood. Should you have questions about your specific business, your advisors here at Barker, Beck, Collins & Kronauge Agency are only a phone call away. We look forward to hearing from you!