Frequently Asked Questions
Is General Liability insurance required?
This is not a requirement per se but some industries like contractors, this may be required in order to get certain permits from the state. This can also be required as part of certain contracts including commercial leases.
What type of liability coverage do I need?
General Liability protects you and your employees if you are sued for causing bodily injury or property damage in the course of your work. Professional Liability like Errors & Omissions Liability covers you in case you make a mistake that causes a financial loss to your clients. Products Liability protects you if you make or sell a product and that product causes injury to someone or makes them sick. Personal & Advertising injury Liability protects you in case you are sued for liable or slander, copyright infringement, etc. Completed Operations Liability protects you if you are a contractor and you install a furnace or a ceiling fan and by installing it incorrectly, it leads to a property damage or bodily injury loss. As you can see, there are many types to consider and a professional agent can help you access which of these or combination of these you might want to consider.
Does Liability coverage pay for defense costs even if the lawsuit is groundless?
Absolutely. People are suing today more than ever before and many lawsuits never get to the point of a payout, but the cost to defend yourself could bankrupt your business. Your General Liability policy can help defend you for covered causes of loss. Better to pass those costs on to your insurance company than have to use your time and money to defend yourself.
I am a service provider and I do not have my own business location, I go to client’s homes & businesses. Do I need Liability coverage?
Absolutely. If you visit a client at their home or business and you injure someone or you damage their property during the course of your work, General Liability can be there to cover the damage you cause. This is called Operations coverage under a General Liability policy.
I hire Independent Contractors, do I need General Liability if I do not have any other employees?
You may still want to consider purchasing General Liability. You can be held Contingently liable for the acts of your subcontractors. Even if they show you proof they have their own insurance, if the lawsuit exceeds your Independent Contractors’s insurance limits, you could be responsible for the additional since you hired the contractor. General Liability or Owners & Protective Insurance can protect you for this exposure.