What to Look For in General Liability Insurance

In this article, we’ll take a look at what to look for in general liability insurance. We’ll go over coverage, costs, deductibles, and requirements. After all, no one wants to get sued. In the event that your business is sued, you want to make sure that you’re protected in case of a lawsuit. While this article doesn’t cover every aspect of insurance, it’ll give you a good idea of what to expect.


The costs of general liability insurance are dependent on several factors. Your job may pose more risk than other businesses, resulting in higher premiums. Your location may also influence the cost of your coverage since densely populated cities to have a higher risk of property and bodily injury. If you run a retail business, you may pay only a few hundred dollars a year for basic coverage. However, if you operate a construction company or a plumbing company, your premiums could be several thousand dollars per year.

A general liability insurance policy can cover these costs. Most companies have insurance policies that cover these types of expenses, and premiums for these types of policies vary depending on the risk. Generally, businesses pay between $400 and $1300 per year for this type of policy. Although higher premiums may cost more money upfront, they can save money in the long run. A Hartford study of small business claims found that these policies cost a median of $42 per month.

The costs of general liability insurance depending on the type of business and the limit of coverage. The limit is the maximum amount an insurance company will pay for a particular claim. General liability insurance policies usually have two limit options: per occurrence and aggregate. The per-occurrence limit represents the maximum a company can pay for a single incident, while the aggregate limit covers all claims during a policy year. By combining the per occurrence and aggregate limits, the average cost of general liability insurance for a medium-risk company is about $365.

Depending on the type of policy, general liability insurance can cost several hundred dollars per month or significantly more. It is essential to purchasing this insurance, as lawsuits can destroy your business if you’re not properly covered. General liability insurance can protect your business from legal actions for physical injuries, property damage, and advertising injury. It’s not just important to protect yourself and your reputation, but it can also help your bottom line and protect your personal finances.


Although general liability insurance is not mandatory, many partners, clients, and landlords will require it. Having the proper certificate of insurance will not only show potential clients or landlords that you have a policy but will also give you peace of mind. Here are some tips for finding the right policy for your business. Here is a list of common questions to ask your insurance company. The right policy for your business depends on the size and type of business.

What is general liability insurance? It protects your business from lawsuits brought against it. It pays for legal costs if a client files a lawsuit against you. It can be expensive to hire a legal team, and if the damages exceed the amount of your policy, you could be faced with a hefty debt. Fortunately, a policy that covers general liability will save you money in the long run. Whether you’re a new business or have been around for several years, general liability insurance coverage can protect your assets.

How much coverage is enough? The amount of coverage you choose directly impacts the cost of your monthly premium. Although a lower monthly premium can be tempting, you should consider that underinsured drivers could end up paying a lot of money out of their own pocket after an accident. A general liability insurance policy is an important investment for any business that deals with valuable assets. It costs between $300 and $1,000 a year. You should choose an amount of coverage that is appropriate for your business and its activities.

General liability insurance covers a variety of possible risks. For example, if your client’s property gets damaged due to your business’s negligence, the insurance coverage will pay for the medical costs of the client. It will also cover the costs associated with defending a lawsuit. It is a great way to protect yourself from the unexpected. A general liability insurance policy can also protect your business from legal claims. It can be difficult to gauge the costs of liability insurance without an assessment.


A liability deductible is not the same as a self-insurance retention. A deductible represents the insured’s responsibility for the loss up to a pre-determined amount. The deductible will be deducted from the total cost of the policy, so a $500 hospital bill would be covered by the insurance policy. The amount of the deductible is often the same as the cost of repairing the building. Whether the deductible is high or low is irrelevant.

Many liability insurance policies include deductibles and self-insured retentions. Though the two are sometimes used interchangeably, there are differences between them. Deductibles are typically a portion of the premium and self-insurance retentions are a percentage of the total. Using deductibles allows you to pay a lower premium. Deductibles are often added to a policy via endorsement and can significantly lower the cost of your coverage.

When choosing a deductible, you should consider how much money you’re willing to spend on damages and loss. You can make your insurance premiums lower by selecting a high deductible, but the deductible will also lower the amount of the insurance company’s payment. You should also consider the deductible amount, which can be a large portion of the overall insurance premium. If you can afford it, a high deductible might be the best option.

When purchasing insurance, always remember that deductibles are a key aspect to consider. Deductibles are the out-of-pocket expenses that you’ll pay for a claim before your insurance company will begin paying. A deductible can vary between policies and is a key factor to consider before purchasing a policy. For example, if your policy covers a $25,000 claim, then a $500 deductible would apply to a claim for $2,500 or more.


Many employers and clients require general liability insurance for their employees. In some cases, it is sufficient to cover the legal costs associated with the most common third-party lawsuits. However, some businesses do not need this coverage. For example, a home-based business doesn’t need general liability coverage, while contractors often need it. Regardless, it is a smart idea to secure this coverage for your business to avoid any financial problems.

While general liability insurance isn’t mandatory in Illinois, it is highly recommended. There are varying insurance requirements by industry and by city. If you are unsure of what Illinois insurance laws require, you can schedule a consultation with a local insurance agent. A qualified representative can explain all of the requirements for your business and help you find the best policy for your needs. When you are looking for general liability insurance in Illinois, take your time and do some research to ensure that you have the coverage you need.

The requirements for general liability insurance will depend on a variety of factors, including the type of permit and the height of the tallest building nearby. Use a tool developed by the Department of Transportation to determine how much insurance you need. A tower crane requires general liability insurance coverage of $80 million. In the same way, a vertical or horizontal enlargement of an existing building requires general liability insurance of $80 million.

A general liability insurance policy will protect a business from a variety of risks. This policy can cover a wide range of costs associated with accidents, including bodily injuries, property damage, and attorney fees. It may also protect a business from claims related to copyright infringement, advertising injury, and reputational damage. Ultimately, general liability insurance can protect you from financial losses if a customer chooses to sue you for a negligent act.


Exclusions of general liability insurance include those related to negligence, defective work or product, and legal or equitable right of possession or bailment. The definition of “insured contract” lists specific contractual arrangements that are excluded. Some of these provisions are called “kitchen sink” provisions because they exempt liability for an act done by someone else that is included in the contract. An example of this is a clause stating that “you” or “your” are not insured if you engage in certain activities that are not related to your business.

Depending on the policy, some types of risks are excluded entirely. Certain activities are categorized as ‘high-risk specialty risks’ and cannot be insured through a general liability policy. Stunts and racing activities are high-risk specialty exposures. Stunts and racing activities need to be separately insured and underwritten. War is another common exclusion, which covers damage caused by a civil war, insurrection, rebellion, or revolution. Certain risks may be difficult to foresee and cannot be insured in a general liability policy.

Other exclusions of general liability insurance include employment-related claims. Employers may wish to consider employment practices liability insurance to cover such claims. Cyber-related claims are covered under cyber liability insurance. For businesses that serve alcohol, a liquor liability insurance policy may be the best option. These policies typically cover claims arising from the service of alcoholic beverages and other types of liquor. Listed below are some of the exceptions and limitations of general liability insurance.

Some exclusions are narrowly construed in favor of the insured. The insurance policy should be interpreted to read the exclusions in their context. When one exclusion is found not to apply, other exclusions remain in effect. In certain situations, an exception can restore partial coverage. Exclusions are subject to severability clauses. If you are unaware of these rules, consult a general liability insurance policy.


Rebecca Alderson
Rebecca follows and writes about the latest news and trends surrounding crypto currency. She's currently investing in BTC and ETH.