Types Of Business Insurance Coverage – What is General Liability Insurance? Commercial General Liability (CGL) is a business insurance coverage written to cover your exposure to 3rd party claims for bodily injury, property damage, or personal injury or lawsuits. Most general liability insurance policies in Oklahoma (OKC) and nationwide are very broad and cover some of the following exposures:
Most small businesses in Oklahoma and across the US require General Liability Insurance coverage. If you rent or own an office or commercial space, it is required or provided that the business needs the security provided by A Commercial General Liability (CGL) policy. In fact, one of the first steps small businesses take when they set up shop, is to purchase a CGL to protect the foundation of their business.
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The premium basis of policies varies based on the type of business you own. Property type exposures tend to be rated on premises while service and construction tend to be rated on Sales or Payroll. Each policy has a page that lists your exposures and codes, the basis of the premium, and the exposure they use to determine your premium. You should check it to make sure it is accurate.
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General liability insurance limits, whether you are in Oklahoma City (OKC) or another state, may vary but the standard limits that apply are $1,000,000 per occurrence. General liability insurance will also contain one or more “aggregates”, Aggregates are the most the policy will pay out in a year for that type of coverage.
The standard policy has a “products and completed operations aggregate” and a “General Aggregate” for claims other than products or completed operations. If you want to have a higher limit of general liability insurance than 1 or 2 million, you should buy Commercial Umbrella or Excess Liability Insurance.
Endorsements are used to modify the basic general liability insurance policy. Some endorsements expand coverage while others limit coverage. This can be used to tailor your general liability insurance for your type of business. Some types of widely used endorsements are: Start your free trial, then enjoy 3 months for $1/month if you sign up for a monthly Basic or Starter plan.
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Business owners need business insurance. Most states require business owners to at least have general liability insurance. But you can’t go to an insurance agency and say, “I want some business insurance, please!” That’s because there are almost as many types of business insurance as there are types of businesses, and one size does not fit all.
Business insurance is an umbrella term for a different type of insurance that covers the financial losses of your business. Depending on the policy, business insurance can cover anything from property damage to legal liability to medical expenses, and more.
1. General liability insurance 2. Workers’ compensation insurance 3. Commercial property insurance 4. Professional liability insurance 5. Commercial auto insurance 6. Product liability insurance 7. Business owner’s policy (BOP) 8. Cyber liability insurance
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General liability insurance protects you from business-related claims. If someone is injured on your business property, or if you damage someone else’s property, this insurance covers the cost of your defense and any damages incurred. Any business that works directly with customers needs general liability coverage.
For example, let’s say you own a retail store. A customer slipped and fell in your lobby and broke their arm. They sued you for bodily injury, and the court awarded them $100,000 in damages. If you have general liability insurance, your insurer will pay the damages and cover your legal fees.
Workers’ compensation insurance, or “workers’ compensation” for short, provides coverage for medical expenses and lost wages if an employee is injured while on the job. In some cases, it also covers the cost of your legal defense if the employee sues you. Sometimes disability insurance is included in workers’ comp.
For example, let’s say you have a small clothing line. If one of your employees is injured while sewing, your workers’ compensation insurance will cover their medical expenses and lost wages.
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Any business with employees needs workers’ compensation insurance. It is required in every state, except Texas, for businesses with employees who are not owners. Four states even require that you buy a policy from the state, not a private carrier.
This type of business insurance protects your business assets from damage or theft. If your office is damaged by fire, or if your computer equipment is stolen, this insurance will pay you for the cost of repair or replacement, as well as lost income. Any business with physical assets needs commercial property insurance.
For example, let’s say you are the owner of an accounting firm and your office is burglarized. Thieves steal your computer, printer, and office furniture. If you have commercial property insurance, your insurer will pay for the cost of repair or replacement, as well as for the income you lose while your team can’t work because of the lost equipment.
Also known as errors and omissions, this type of insurance protects businesses from the cost of damages or injuries that occur as a result of professional services provided to the business. If you provide a service to your clients, and they claim that you did not do the job correctly and your mistake led to a loss on their part, this insurance covers the cost of your defense and any damages awarded.
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For example, let’s say you are an architect. You design a house for a client, and they claim that the roof leaked in the first storm because of your poor design. If they sue you, your professional liability insurance will cover your legal costs and any damages awarded.
Commercial auto insurance protects your business from the cost of damages or injuries that occur while you are using a vehicle for business purposes. If you or one of your employees is involved in an accident, this insurance will cover the cost of repairing or replacing the vehicle, as well as any medical expenses and lost wages. Any business with vehicles needs commercial auto insurance.
For example, let’s say you own a food truck and you are involved in an accident. Your commercial auto insurance will cover the cost of repairing or replacing your truck, as well as any medical expenses and lost wages.
Product liability insurance protects you from claims arising from the products you sell. If a customer claims that your product has caused injury or damaged their property, this insurance will cover the cost of your defense and any damages awarded.
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For example, let’s say you sell a cleaning product that gives someone a severe allergic reaction that results in hospitalization. If the customer sues you, your product liability insurance will cover your legal expenses and any damages awarded.
A business owner policy (BOP) is a type of business insurance that combines different types of coverage. The most common types of coverage included in a BOP are general liability, property damage, business interruption, and workers’ compensation.
For example, let’s say your small business is an ice cream shop. Your business has been burglarized and your cash register stolen. You were forced to close for two weeks while repairs were made. If you have a business owner’s policy, your insurer will pay you the cost of lost business, as well as the cost of repairing or replacing your office equipment.
Cyber liability insurance protects you from the cost of damages or injuries that occur as a result of a data breach. If your business is hacked and customer data is stolen, this insurance will cover the cost of your defense and any damages incurred. It also covers the cost of any public relations (PR) necessary to repair your reputation, as well as credit monitoring for your affected customers.
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For example, let’s say your store’s customer database is hacked, revealing the names, addresses, and credit card numbers of your customers. Cyber liability insurance will pay them in case of a claim, and pay for free credit monitoring for affected customers. It can also cover your legal costs.
When choosing a business insurance policy, it is important to choose one that covers all your risks. You also need to consider the deductible (the amount of money you have to pay out of pocket before your insurance kicks in). A higher deductible may mean lower premiums, but it also means more risk for your business.
Your business insurance needs will depend on the size and type of business you have, as well as the industry you are in. If you’re not sure what coverage you need, talk to a business insurance agent or broker. They can assess your risks and help you choose the right policy for your business.
No business is immune to risk, but you can protect your business with the right insurance policies. By understanding the types of business insurance available, you can ensure that your business is properly covered in the event
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