Everyone who runs or starts a business knows there is a need for general liability insurance. Business liability is the foundation of protecting your business in the event of property damage or personal injury resulting from your operations. But how do you decide how much and what kind of coverage you need? Depending on your business, you may require additional coverage’s or endorsements to avoid gaps. Contact Precision Insurance today at 909-752-0239. We have fast become the go to business insurance agency in Southern California serving the local and extended areas of Montclair, Ontario, Chino, Pomona, and Upland.
Also known as Commercial General Liability, this coverage is an agreement between the insurance carrier (or insurer), and the insured (you), where the carrier promises to pay a monetary sum that the insured is legally obligated to pay because of bodily injury or property damages covered under the policy. Damages can also include punitive damages which are amounts above and beyond compensatory damages.
The cost of lawyers to defend you in a lawsuit as well as any settlement or court award if you are successfully sued are covered. Another important coverage in this day of social media is protection against claims of slander or libel. It also covers you against claims of false or misleading advertising and copyright infringement.
Regardless of the size of your company, the questions are pretty much standard when looking to buy large or small business liability insurance. The answers may be more extensive for a big company compared to those purchasing liability insurance for small business. The industry type of your business will also play a role. Here are just some standard pieces of information that you should have readily available when shopping.
– Business Structure: Is your business a sole proprietorship, corporation, LLC, or partnership?
– DBA: Business trade name
– Contact information: Name of primary and secondary contact, business and mailing address, phone number, email, and website (if applicable)
– Nature of business: Description of primary operations
– Is business a subsidiary of another entity?: If yes, name of parent company and description of relationship, and percentage owned
– Does your business have any subsidiaries?: If yes, names of all subsidiaries and description of relationship, and percentage owned
– Is there a formal safety plan?: Describe details of safety program and meetings.
– Any exposure to flammables, chemicals, or explosives?
– Any coverage or prior policy cancelled, declined, or non-renewed within the past 3 years relating to operations or business premises?: A detailed description with dates will be required.
– Any uncorrected fire or safety code violations?: If any past violations, description of corrections will be required. Photos may need to accompany description.
– Any medical facilities provided or medical professionals contracted?
– Any exposure to radioactive or nuclear materials?
– Any past or existing claims?: If you have had prior coverage, it’s always good to request the loss runs from past carriers. This helps speed up the underwriting process.
More information will be needed to ensure your business is properly underwritten especially if you are a contractor, transport hazardous material, or a manufacturer of goods. If you do any subcontracting work, the contract may require you have specific insurance limits with the company hiring you as a named insured.
Yes it does! So, even if you think it is unlikely for a claim against you to occur, it is a good investment and is relatively inexpensive depending on your business type. Coverage premiums start at $350 and up. That is quite a bit less than your costs to defend against a lawsuit you win. If you lose, it is much less than the thousands or hundreds of thousands a court loss can cost you.
Precision Insurance can write an individual general liability policy or we can include it as part of your Business Owner’s Policy (BOP). BOP places your liability and property insurance into one bundled package. If you already have BOP, have us check it review your coverage’s at no cost and zero obligation. Many clients appreciate our service from the start knowing that our approach is having your best interest in mind.
The majority of businesses in California maintain general liability insurance coverage year after year. If and when a claim is reported, determining the coverage available for that particular claim and which policy applies is dependent on the coverage trigger. The trigger is the indicator of the event required in order for a policy to be responsive. There are basically two versions of the commercial general liability policy or business general liability policy. The difference between the two is the event that triggered coverage for bodily injury or property damage.
Occurrence coverage is triggered if the injury or damage occurs during the policy period where the claims-made option is the filing of a claim during the policy period triggers coverage. The more popular option is the occurrence form. If a claim is filed years after the incident took place but coverage was in-force, then the policy will respond. On the flip side, a claims-made policy must be in force at the time the claim is filed.
We are more than an insurance sales agency. We are an insurance agency that offers you advice about the coverage you need. As an independent insurance agency, we offer you a choice of coverage and carriers. We work for you, not for the insurance company. However, buying insurance from Precision Insurance, an independent agency, can be more cost-effective than buying from a single insurance carrier. Our range of markets allow us to get the right products and rates for your company.
Find out how Precision Insurance can help your business in Southern California thrive. Call us now at 909-752-0239. Our office in Montclair, CA serves local businesses but also companies throughout California.