If you operate a business in Maine, you may be asked for a certificate of insurance to prove that you have liability coverage. Some people think about liability insurance when they first start their business; others don’t think of it until someone asks for proof.
What Does General Liability Insurance Do?
GL insurance protects your business’ assets against lawsuits for:
- Bodily Injury caused by your actions, or that happen on your premises.
- Property Damage that you cause to the property of others.
- Personal Injury, such as slander, libel or invasion of privacy.
- Products and Completed Operations Liability – in case your product or work harms someone or their property.
How Much Business Liability Insurance Do I Need?
What General Liability Insurance Does NOT Protect Against
- Professional Liability, such as improper design, malpractice, errors or omissions. You need separate Maine professional liability insurance to get this coverage.
- Employment Practices Liability, such as wrongful termination, sexual harassment or employee benefits liability. You should purchase Maine Workers’ Compensation and Employment Practices Liability Insurance if you have these exposures.
- Auto Liability. You should purchase Maine Business Auto commercial vehicle insurance if your company owns vehicles. If your company owns no vehicles, you should add Hired and Non-Owned Auto Liability coverage to your GL policy.
- Pollution Liability. If your business uses pollutants, you should purchase separate insurance for this.
How Much Does General Liability Insurance Cost?
Rates vary, based upon factors including:
- Type of business;
- Your revenues or payroll;
- How long you have been in business, and your qualifications;
- Loss experience.
- Whether you combine your business property coverage with your GL coverage.