This policy is totally unavoidable, especially in California.
In order to rent a business space, one of the first steps you will go through is bringing a certificate of General Liability to a Landlord or Property Management Company.
You will not even start moving or signing lease agreement before you provide them with a Certificate of your Commercial General Liability Insurance adding the name and address of the Landlord into the Certificate of Insurance as additional insured.
What is General Liability Insurance Coverage
- Third party Bodily Injury
- Third Party property damage
- Product Liability
- Advertising Injuries
Buy General Liability Insurance
What is General Liability (GL) policy for:
GL provides coverage protecting your business from a lawsuit against you as an owner of the business for violations of General business codes, rules and regulations as well as ethics or “slip and fall” accidents
However, the most significant part of General Liability coverage is called – Product Liability coverage
What is Product Liability coverage?
While Landlords mostly care about all tenants having a GL policy, – if you really care about your business security, the most important part of any commercial policy is -Product Liability (PL) coverage.
All Business owners are strongly recommended and most of the times, required to obtain a basic General Liability coverage (GL) which will cover their basic business operations only pertaining to a risk on business premises, excluding Product Liability Coverage.
Please be advised that product liability coverage is the most important part in any event, – simply because we are discussing the value business owner offers to his clients, which is defined as their product and it is not necessarily something of a physical nature.
For example, for some doctors their Product Liability coverage is not just protection of their physical tools or equipment, but most of the time, it is a protection of quality of what they do while treating their patients, and how well do they do it.
- If you are an automobile repair master, your product is how well you perform the repair of your client’s car.
- If you are manufacturer, your product is something that you manufacture
- If you are service provider, your product is quality of service you provide
The amount of Coverage must be at least $1,000,000 – required to carry by your business contracts of almost every nature.
Product Liability Coverage relates not to what you sell – It’s about WHAT YOU DO.
How do you generate business income – is what your “PRODUCT” represents.
General Liability policy without Product Liability coverage added to it is a very limited policy.
Product Liability is the most important part of any commercial insurance.
Please discuss it with our agent by asking questions and demand a printed proposal while getting protection quotes.
We also suggest calling us about Umbrella Policy – which is an extension of your liability limits up to 1 million or higher amount of protection.
General Liability Vs Business Owners Policy
Both general liability insurance and a business owner’s policy provide basic protection for your small business, so which one is right for you?
A business owner’s policy, also known as a BOP, bundles general liability coverage with commercial property insurance, which can pay to repair or replace business property that is damaged, stolen, or destroyed.
A Business owners policy typically costs less than if you purchased each policy separately.
Both policies offer basic liability protection. A general liability policy and a BOP both protect your small business from premises liability, property damage liability, and advertising liability claims.
Both policies can be customized with endorsements. You can add product liability coverage, commercial auto insurance, or liquor liability insurance to either your general liability or BOP insurance.
Remember, a business owner’s policy includes general liability coverage, so you only need to purchase one of the two policies.
A BOP can reduce your insurance rates. If you’re looking to save money on small business insurance, a BOP should be the first place you look. You’ll receive multiple types of coverage at a lower rate than you’d pay if you purchased each policy individually.
BOP is not available to all business owners. A business owner must meet certain criteria to be able to bundle insurance policies. Only low-risk small businesses can purchase a BOP, while almost any business can purchase general liability insurance. For example, if you work in construction, you may not be eligible for a BOP because your industry is considered high risk. You could, however, still purchase a general liability policy to protect your construction business from liability exposures.
General liability insurance coverage (GL) protects you and your company:
For claims involving bodily injury or property damage as a result of using your specific products, services, or other types of business operations as well as any aspect of interactions with your clients, partners, suppliers and even neighbors of your business premises.
It may also cover you if you are held liable for damages to your landlord’s property or property of your clients or neighbors.
In other words, your interaction with outside world are simply unavoidable in most of the instances of your business activity which makes GL to be a # 1 coverage before you can even open the door of your place of business and let your potential clients in.
Don’t just ask your friends what policy they have or recommend to you. Speak to professionals and demand the answer on questions WHY, and not just WHAT…
The best way to assess your needs for General Liability policy and get you the best price quote with optimal coverage is to speak with an experienced agent who can take you through the application form.
ABSInsurance.com agents have provided General Liability Insurance and other types of commercial, private, and professional policies for three decades in California and other states. Fill out the form, schedule a call with a life agent about your needs.
Frequently Asked Questions (FAQ)
General liability insurance policies cover you and your company for claims involving bodily injuries and property damage resulting from your products, services or operations. It may also cover you if you are held liable for damages to your landlord’s property.
If you are purchasing general liability insurance to fulfill the terms of a contract or lease, you need to make sure that your coverage meets the requested policy limits. The amount of coverage you need also depends on factors such as the size of your business, its industry risks, and the number of employees.
Most small businesses opt for the standard $1 million per occurrence / $2 million aggregate policy limits.
This means the policy will pay up to $1 million to cover a single claim, with a $2 million limit for the lifetime of the policy.
A business owner’s policy, also known as a BOP, bundles general liability coverage with commercial property insurance, which can pay to repair or replace business property that is damaged, stolen, or destroyed.
A Business owners policy typically costs less than if you purchased each policy separately.
The cost of General Liability Insurance depends on a few factors which any insurance professional must be able to disclose to you along with all the reasons for questions you are being asked.
- Business operations
- Policy limits
- Location of your business
- Annual revenue
Small businesses pay about $40 per month for this policy.
Business Safety and reduction of Premium
Whether you require business liability insurance for contractors or a general liability policy, ABS Insurance & Financial Services can provide policies that protect businesses from defects on physical premises of the business, accidental destruction of personal property, and equipment breakdowns as well as personal injury arising out of defamatory statements, wrongful evictions or trade secret violations.
Because business insurance premiums are based on the insurer’s risk in providing coverage, we recommend that the business owner maintain a safe environment on the premises and simultaneously reduce insurance premiums.
Precautionary measures include maintaining bright lighting throughout the premises, keeping passageways clear of wiring and other clutter, good record keeping, comprehensive fire safety practices, and well-trained employees who understand the value of a safe work environment. These steps will reduce premiums for business owners seeking business liability insurance and business liability insurance for contractors. Please direct any inquiries regarding general liability insurance to ABS Insurance & Financial Services.
