General Liability

What is General Liability Insurance? 

Business liability insurance, also known as general liability insurance (GL), offers coverage that safeguards against an assortment of claims stemming from your business activities. These claims can encompass bodily injury, property damage, personal injury, and other issues. Generally, quotes for general liability insurance encompass the following elements:

• Liability for harm caused to people or their belongings
• Injury to reputation and infringement of intellectual property rights
• Coverage for medical expenses incurred by individuals
• Protection against claims arising from products or services provided
• Safeguards for rented premises that may be damaged

Discover the invaluable safeguarding these coverages provide to small enterprises and deliberate upon the optimal degree of coverage tailored to address your distinct vulnerabilities.

Why might someone require general liability insurance?

Many contractors have the option to obtain separate coverage for general liability insurance, in addition to property insurance typically included in a business owners policy (BOP).

To secure your means of living, it is essential for contractors and small business proprietors to acquire appropriate business liability insurance.

Having suitable liability coverage is crucial as it shields you from the potential repercussions of a single accident, beyond your handling capabilities. It is essential to ensure that the level of coverage aligns with your exposure to protect yourself effectively.

In order to be eligible for employment or freelance work, certain employers or clients may demand that you have a specific level of general liability coverage.

GLI for Contractors

As a contractor, having general liability insurance may suffice rather than obtaining a business owners policy (BOP). This is particularly applicable if you do not possess commercial properties that necessitate property insurance or the need to cover expenses like payroll or other operational costs. Nonetheless, it is essential to acknowledge that your profession still entails potential risks and liabilities.

If you meet the requirements, you have the opportunity to obtain general liability insurance without the additional coverages included in a Business Owner’s Policy. Our policies include general liability coverage and also offer Additional Insured Coverage specifically designed for eligible contractors.

Some agreements with employers necessitate the extension of your current liability insurance to cover other entities. This is known as Additional Insured Coverage.

FAQs about General Liability Insurance (GLI)

Is GLI a legal requirement?

Declining to possess general liability insurance could potentially leave you burdened with covering all costs tied to a legal claim against your business. Consider this scenario: a client falls and sustains a hip injury while at your office, where a rug caused the accident. In the absence of general liability insurance, the onus would fall entirely on you to bear the brunt of medical expenses and legal fees. Although not legally mandated, making it a priority for your business is essential.

Is there a deductible associated with general liability insurance?

Indeed, upon acquiring a quote, it is within your prerogative to select the magnitude of your deductible for general liability. This deductible, essentially an unfixed expense that is not covered by the insurance until after it has been paid, is agreed upon by you as an initial out-of-pocket cost before your policy’s coverage comes into effect.

Can theft be covered by general liability insurance?

General liability insurance specifically covers damages caused to someone else, not any losses incurred by you. You are referred to as the first party, while the individual making a claim against you is regarded as the third party. As a result, general liability insurance does not extend coverage for theft or damage to your own belongings or equipment. Our Business Owners Policy includes coverage for Business Personal Property, ensuring the protection of your valuable assets.

Does general liability insurance qualify for tax deductions?

Indeed, general liability premiums are typically classified as an essential expenditure in the realm of commerce and are therefore eligible for deduction during tax season. Regardless, seeking advice from a tax specialist is strongly advised to guarantee accuracy.

Is professional error included under general liability coverage?

Professional liability insurance is necessary to safeguard yourself against allegations of professional negligence or errors, as general liability coverage only offers protection against claims made by third parties regarding bodily injuries or property damage caused by you.

What is a Certificate of Insurance?

A certificate of insurance (COI) serves as an authoritative record incorporating all the various coverages and restrictions within an insurance policy. In essence, it serves as documented evidence substantiating possession of an insurance policy, while further elucidating its specific coverages and the extent of its limitations.

Is it possible for SeaCastle to assist me in obtaining General Liability Insurance in my specific state?

Absolutely! SeaCastle has got you covered when it comes to obtaining business insurance. You can find a wide range of coverage options, including general liability, in all states across the US, with the exception of Hawaii. Feel free to explore available insurance plans based on specific states.

Is it possible for businesses with a high level of risk to obtain general liability insurance?

Yes. Certain businesses deemed high-risk have the opportunity to obtain general liability insurance through a specialized market known as excess and surplus lines. 

Who needs general liability insurance?

A business owners policy (BOP) typically includes both property insurance and general liability insurance, but contractors can also opt for standalone coverage. To protect your source of income, whether you are a freelancer or the owner of a small enterprise, it is imperative to acquire some sort of insurance that covers potential liabilities.

Having adequate liability coverage is crucial to safeguarding yourself from potential lawsuits that could arise from an unexpected accident. It is essential to ensure that the extent of your liability coverage aligns with your level of risk.

In order to be eligible for employment or to work with certain clients, it may be necessary for you to possess a specific level of general liability coverage.

How much does a General Liability Insurance cost?

In 2023, SeaCastle’s customers paid a median cost of $57 for a General Liability Insurance policy. The average price was $69. The majority of clients discover that their monthly premium tends to align with the median cost due to the influence of costly anomalies that elevate the average expense. Your rate will be determined by the distinctive attributes of your enterprise.

Obtain valuable insights into the cost of general liability insurance, the factors that influence policy ratings, and effective money-saving strategies to ensure you secure the optimum balance of price and protection for your business. Get in touch by phone or begin an online quote to embark on your quest for the ideal coverage.

Learn more about the general liability insurance such as factors impacting policy ratings, and hence cost. Learn ways to find cost effective coverage as we help you reduce costs while maximizing coverages and protection for your business. Contact us, we are here to assist.

A Business Owner’s Policy (BOP) can provide a comprehensive insurance solution, including general liability and various other coverages. If your business comprises commercial buildings and valuable assets, opting for a BOP can enhance your protection by offering additional safeguards.

How much does General Liability Insurance cost for Contractors?

As a contractor, you may find that a business owners policy (BOP) is unnecessary and that general liability coverage suffices. This is particularly true if you do not possess any commercial properties mandating property insurance, nor are responsible for paying salaries or other operational costs. Nevertheless, despite these factors, the risks associated with liability remain pertinent to your profession.

If you meet the criteria, you could potentially obtain general liability insurance without the inclusion of supplemental coverages provided by a BOP. Our program extends general liability coverage to contractors and includes the option for Blanket Additional Insured Coverage.

Expanding the scope of your liability insurance, Blanket Additional Insured Coverage ensures that other entities are protected under your policy, as stipulated by certain contractual agreements with employers.

General Liability Class Codes

Organizations employ diverse approaches in managing their classification systems and general liability (GL) class codes, serving the purpose of evaluating the risk level of businesses. These systems encompass a variety of codes, including the following examples:

Insurance Services Office (ISO)

National Council on Compensation Insurance (NCCI)

North American Industry Classification System (NAISC)

Standard Industrial Classification (SIC)

Insurers have various methods to determine the factors affecting your general liability insurance policy. These methods include utilizing the ISO classification system, employing codes from another organization, or adopting their own unique classification codes.

The Significance of General Liability (GL) Class Codes

Small businesses may receive inaccurate quotes for their business liability insurance if insurance companies or agents do not have access to general liability class codes. This is due to the fact that these codes have the potential to significantly influence various aspects of a business.

The price of insurance is determined by the assigned code for each business. Typically, higher-risk operations would have a higher rate for their code. It is important to note that insurance rates may differ between states, thus impacting the overall cost of general liability insurance based on your geographical location.

The nature of coverage and exclusions is such that they are tailored to suit the respective nature of work in different industries or classes. Should a liability loss occur due to a company engaging in activities beyond its designated industry, insurance companies may deny coverage for any resulting claims.

What Are the Applications of GL Class Codes for Insurers?

Every industry has its own distinct characteristics and every company is exposed to its own set of risks. Insurers employ GL class codes to assess the level of risk associated with a business based on its industry and the nature of its operations. These codes also enable your insurer to identify specific exclusions applicable to your general liability policy.

Suppose you are the proud proprietor of a charming flower emporium. While seeking a quote for comprehensive liability insurance, the insurance company will designate your humble enterprise with a distinct class code specifically tailored for delightful flower boutiques like yours. Once the coverage is obtained, you impulsively embark upon a storefront renovation project, inadvertently causing harm to an unsuspecting individual.

There is no assistance provided by your common liability coverage when it comes to the medical expenses or legal actions caused by the renovation work, as this exceeds the boundaries of what is considered relevant to flower shops.

Class codes are employed by insurance companies for purposes beyond general liability coverage. Specifically, they are utilized in the computation of premiums for workers’ compensation insurance.

Find Your General Liability ISO Code

A number of industries adopt a GL ISO code to denote their specific trade. Each business is categorized based on their distinct type of work, such as:

Barber Shops – 10113

Consultants – 41677

Florists – 12841

Photographers – 16471

Technology businesses doing computer service or repair – 91555

You can familiarize your SIC or NAICS code so you are better informed, or reach out to us and our team at SeaCastle Insurance will be happy to help!