General liability insurance, also referred to as commercial general liability insurance, is one of the most common types of small business insurance. General liability insurance provides broad coverage for the small business owner and is a foundation for small business insurance. Learning about essential key terms and coverage limits of general liability insurance policies will help the small business owner when it comes time to purchase his commercial insurance policy.
Each Occurrence. A business liability each occurrence policy typically has an “each occurrence” limit, which is typically one million dollars — but can range anywhere from $100,000 to two million dollars. Property damage and bodily injury are covered in this type of policy limit.
General Aggregate. A business liability general aggregate policy is normally twice the limit of a business liability limit. A business liability general aggregate refers to the maximum payment that an insurance company will distribute during the policy period.
Personal/Advertising Injury. Typically, the limit on personal and advertising injury is the same as the limit on the business liability each occurrence limit. Coverage includes personal injury, but doesn’t include property damage or bodily injury. However, slander claims, false advertising and unintentional liable are included.
Products Completed Operations Aggregate. Like business liability general aggregate, the aggregate limit is typically twice the limit of the business liability each occurrence limit.
Medical Payments. This protection covers medical bills incurred by third parties who may become hurt or injured on your property — even if you’re not liable. The coverage limit varies, but is typically $10,000. This coverage is only for third party claims that happened while on your premises — the coverage doesn’t apply to the small business owner or his employees. In most cases, you have one year to request medical payment coverage for a claim that happened on your premises.
Damage to Premises Rented by You. This is another limit of liability prescribed by the standard business general liability policy. This coverage limit includes fire damage on premises you rent. The limits on this coverage vary, but may range from $100,000 to $300,000. Your own property is not included in this coverage.
