General Liability is a form of insurance that is designed to protect business owners and operators from a wide variety of liability exposures. Some of these exposures may include liability arising out of accidents on the premises or the operations of an insured business; products sold by the insured business; operations completed by the insured business, and contractual liability.
This type of business insurance basically provides invaluable asset protection for businesses of all types against financial loss. For example, if a business is being sued by a claimant for property damage, completed operations or products liability, advertising injury, personal injury, or other reasons, general liability insurance will protect the business from financial ruin.
General liability insurance can be combined with a package policy that typically includes two or more other types of coverage. Average business insurance package policies include commercial general liability insurance, commercial property insurance, commercial auto insurance, inland marine, crime insurance, and more. General liability insurance can also be purchased by itself. It usually has maximum limits that the insurer will pay per claim. Common limits of this type of business insurance are $1 million each occurrence, $2 million for general aggregate, $2 million for products liability and completed operations, and $1 million for personal and advertising injury. While these limits will generally suffice for a small business, larger businesses should seek the option of purchasing additional coverage limits, known as excess insurance. In many cases, businesses will choose to purchase at least $1 million worth of excess liability insurance.