Understanding a General Liability Policy
When picking an general liability policy for your business, the amount of information available can be overwhelming. Below are some questions that may help you familiarize yourself with the terms of a general liability policy.
• What is the premium based on, and will this policy be audited annually? Policies may be based on payroll, gross receipts, or other metrics.
• What exclusions does this policy have, and how could they apply to my class of business? For example, while a general liability policy might cover damage caused by a contractor’s work, it would not cover the cost of redoing the faulty work itself. And a general liability policy for professionals excludes injury or damage caused by their specific professional activities.
• What about adding other parties, such as a landlord or general contractor, as an “additional insured” be an additional charge? This is especially important for contractors and industries that require certificates for proof of coverage.
• What limits does this policy provide, and how financially strong is this insurance company? There are companies that rate insurers based on financial strength, among other factors. Your agent or broker can help you understand the ratings scales.
Coming to the table prepared can help you get the most out of your initial insurance encounter, so bring your questions. We are happy to answer them.
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