What are the Limits on a General Liability Policy?

Commercial general liability insurance is designed to protect businesses against a range of accidents and lawsuits. As such, these policies need to have flexible limits that can change according to a business’ needs.

Most basic general liability policies cover $1 million to $2 million per occurrence. This means that if a lawsuit occurs, you may receive up to $1 million to cover that claim. General liability covers expenses related to:

Larger businesses generally need higher limits of general liability in order to protect against expensive lawsuits. Limits may also depend on requirements and industry. For example, your industry may require you to carry a certain amount of general liability insurance. You can carry higher limits than this requirement, but you cannot carry lower.

Be sure to check the requirements for your industry as well as the frequency of claims. If you work in an industry with a high rate of liability claims (such as construction) you may need higher limits of general liability insurance in order to protect your business.

How Much is Covered Under General Liability Insurance?

A basic general liability insurance covers medical expenses in case of injury and legal expenses in case of a lawsuit. For example, say a customer in your grocery store is walking down the aisle. A heavy jar from the top shelf falls and hits the customer’s head, making them bleed and giving them a concussion.

They are rushed to the hospital, and later try to file a lawsuit against your grocery store for negligence. General liability insurance will help cover their medical costs, such as the hospital stay and treatment. If the customer still decides to sue for more money, general liability can offer compensation for the business’ legal fees, court costs, defense expenses, settlement costs and more.

How Much is General Liability Insurance?

General liability insurance premiums depend on a variety of factors, including your: