As a business owner, it’s essential to protect your company from any potential risks and liabilities that may arise. General Liability Insurance is a necessary form of insurance coverage that many businesses rely on to protect against a range of risks, such as property damage, bodily injury, and personal injury claims. However, the question remains: is General Liability Insurance enough for my business?
While General Liability Insurance provides broad coverage, it may not be sufficient to protect against all your business’s risks. This is because many insurers have limits on the policy they provide. So, if your business faces a significant claim or lawsuit, the limits on your policy may not be sufficient to cover all the damages. Therefore, it’s essential to consider the limits of your general liability insurance policy. Doing so can ensure that your business is adequately protected against all potential risks and liabilities.
General Liability Insurance Limits
As a business owner, it’s essential to understand your general liability insurance policy limits. These limits can significantly impact the amount of financial protection your business receives in the event of a claim or lawsuit.
The limits on general liability insurance policies include two types of coverage limits: per occurrence and aggregate. The per occurrence limit is the highest amount the general liability insurance policy will disburse for one claim during the policy period. In contrast, the aggregate limit is the highest amount the policy will disburse for all claims.
Therefore, it’s important to carefully evaluate your business risks and needs before selecting the limits of your general liability insurance policy. For example, if your business faces a high risk of claims or lawsuits, investing in a policy with higher limits may be necessary. Conversely, if your business faces fewer risks, you may be able to opt for a policy with lower limits.
Remember that general liability insurance policies do not cover all risks and liabilities. Therefore, businesses may need to invest in additional insurance policies, such as cyber liability insurance or professional liability insurance, to protect themselves against specific risks fully.