General Liability Insurance
Sound business practices are the best protection against lawsuits. But if litigation happens, itís nice to know that you have your assets protected by your General Liability policy. This is coverage for an insured when negligent acts and/or omissions result in bodily injury and/or property damage:
- Caused by an insured
- Occurring on the premises of an insured business
- Caused as a result of using the product manufactured or distributed by a business, or when someone is injured in the general operation of a business
Not only does your General Liability pay for the actual and punitive damages, it also pays for the legal expenses involved in your defense. Often the legal expenses may exceed the loss costs.
Depending upon your type of business, premiums may be based upon payroll, revenue, square footage or other risk measurement. Premiums may be auditable at the conclusion of the policy period, so if you have a sudden influx of business, you may want to endorse your General Liability policy to prevent the possibility of additional premium at audit.
Proof of Coverage
Many contractors will require that you provide proof of General Liability insurance before they allow you to work as a subcontractor for them. Your agent can provide this by issuing a Certificate of Insurance. This names the party requesting the certificate and is for informational purposes only. This does not convey any benefits or protection to the other party, and there is no cost involved.
Other contractors, vendors or concessionaires may require that you name them as Additional Insured. This differs from the Certificate of Insurance in that it extends your coverage to include their exposures. Generally, the lowest man on the ladder ends up being held responsible for the rest of the project. Typically the request for Additional Insured status will contain specific language prepared by the General Contractorís Legal Counsel, that they want included on the
certificate. This may require policy endorsement at additional cost to you. There is always a fee for an Additional Insured endorsement, unless you have purchased a Blanket Additional Insured rider.
Contact your broker with questions about your General Liability policy.
Five Star Insurance Agency, Inc.
215 East Main Street
Festus, Missouri 63028