General liability insurance often comes as part of a larger policy and can be tailored for personal use or commercial use. This insurance covers accidents concerning bodily injury and property damage to a third party. For example, if someone slips and falls in a restaurant, their medical bills can be covered under the restaurant owner’s general liability policy.
General liability insurance can cover:
Personal General Liability Vs Commercial General Liability
The main difference between personal and commercial general liability coverage is who it is tailored for. Personal general liability coverage often comes as part of a homeowners policy, renters insurance policy or personal auto insurance policy.
Commercial general liability coverage often has higher limits available for businesses. It can also cover personal and advertising injury. Personal and advertising injury coverage concerns claims of libel, slander, false arrest, copyright infringement and wrongful eviction.
Is General Liability Insurance Required?
General liability insurance isn’t typically legally required. But it is required by mortgage lenders, landlords and other entities that could stand to lose money from such a claim. Business owners, for example, may be required to carry general liability insurance in order to get approved for a loan or certain licenses. Most landlords require their renters to carry renters insurance, which includes general liability for the policy holder and their family.
How Much Is General Liability Insurance?
The cost of general liability insurance varies widely depending several factors, including:
Whether you’re a homeowner or a business owner, your claims history matters when it comes to general liability coverage. If you have previous claims on your liability insurance, you may pay higher rates. The same goes for homeowners and business owners with poor credit scores. You can lower your monthly premiums by raising the deductible, but this also means you must pay more out of pocket after an accident and before receiving compensation.
On its own, policy holders may pay around $40 a month ($500 a year) for general liability insurance. It’s typically more cost-effective when bundled with other policies, such as a home insurance policy, auto insurance policy or business policies.
Businesses may save money by combining coverage under a business owners policy or commercial package policy. These policies combine general liability and commercial property coverage into policies geared toward businesses. They can also be customized with other important coverages. A business owners policy can cost as little as $350 a year for a small business.
What Does General Liability Insurance Cover?
General liability insurance unfortunately can’t cover everything. This insurance does not cover professional negligence or employee accidents. If an employee is injured on the job, they must be covered under workers compensation insurance instead.
Professional negligence, on the other hand, refers to mistakes made by a professional providing a specialized service or product. If a medical professional provides the wrong diagnosis, for example, they could be held liable for damages as a result and would not be covered under general liability insurance.
It’s important to consider your specific liability needs. Individuals may not need as much coverage as a business, but accidents can still happen at home. Homes with pools and trampolines are especially at risk, due to the high injury risk of these features. Speak with your Bromell insurance agent about the general liability risks you, your family or your business face to make sure you find a policy that fits your budget and your coverage needs.