What is Commercial General Liability Insurance?

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?

Liability insurance protects your assets. So, you should at least carry enough to protect the net worth of your business. You may also be required to carry a certain limit of liability coverage in order to perform work for a certain client. A $1 million per-occurrence limit is common. Higher limits are available, as are commercial umbrella policies, which provide even higher limits.

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.
If you have Maine business liability insurance questions, contact a Noyes Hall & Allen agent for prompt, professional answers.