COMMERCIAL GENERAL LIABILITY
Commercial general liability insurance, also called commercial general insurance or general business insurance, is a commercial insurance form that protects your business during liability issues. When your business is legally held responsible, general business form covers medical expenses, attorney fees, and damages such as property damage, or personal and advertising injury liability, regardless of who is responsible for the damage. Commercial and general insurance is one of the most popular commercial insurance forms sought after by business owners.
Commercial General Liability Forms
Commercial general liability covers three forms of liability exposures:
- Premises and operations exposure – a form that protects your business against claims for bodily injury and property damage related to the ownership and maintenance of the business premises, or as the result of commercial operations conducted both at and away from the premises.
- Products and completed operations exposure – a form protecting your business against claims for bodily injury and property damages that result from faulty products or completed operations performed by the business.
- Indirect/contingent exposure – a form that protects your business if you are found liable for the negligent actions or work of independent contractors and subcontractors you hire.
The following 15 liability exposures are specifically excluded from coverage by Part A of the CGL:
- Expected or intended injury
- Contractual assumptions
- Liquor liability
- Workers’ compensation
- Employers’ liability
- Pollution exclusion
- Aircraft, autos, and watercraft
- Off-road motor vehicles
- War exclusion
- Care, custody, and control
- Damage to the insured’s product arising from the product itself
- Damage to the insured’s work
- Property damage/ liability
- Product recall
- Employment-related practices
Business Inventory Insurance
Another essential part of a commercial general insurance is the business inventory. Business inventory insurance ensures that the business will be able to recover from general damage to or loss of property, including equipment, products, and supplies through proper inventory.
If your business owns property, you need to obtain business inventory insurance form. However, the cost of your inventory insurance will also be affected by the total value of the property you insured in the inventory insurance: More inventory coverage will result in higher premiums. However, you may be able to save money on inventory insurance by taking certain safety and security precautions, such as installing fire alarms and sprinklers, which reduce the risk of damage and loss.
Business Owner Policy (BOP)
Protecting assets is generally essential for business owners. One of the most convenient ways to do so is with a business owners insurance policy. Business Owners Insurance (BOP), or Business Owners Policy insurance, is specifically designed for small to medium sized businesses operating in California and other states. It combines some of the basic coverage needed by a typical small business in California into one policy quote at a discounted premium.
Types of Business Owners Insurance
Generally, BOP quote combines several types of commercial insurance, including General Liability and Property Insurance allowing businesses operating in California and other states to get the needed coverage in one policy quote. A general liability policy covers the business and other people involved including partners, members, officers, and subsidiaries. California general liability insurance protects a company’s assets if it is sued for causing property damage or personal injury. Therefore, general liability and property insurance are critical for companies.
Consolidating all the necessary coverage into a business owners insurance quote saves money while getting their needs covered. BOPs bundle general liability and property insurance into a single policy. However, be aware that the general liability coverage limits in BOPs are generally low, so if your business needs more general liability coverage, you may have to purchase it as a separate policy.
What’s In A Business Owners Policy Quote?
Typically, a business owner policy quote in California provides the following general coverage:
- Business interruption insurance – covers losses that cause you to shut operations or reduce production for a time
- Crime insurance – covers loss of money or securities resulting from burglaries, robberies or destruction
- BOP – insures a damaged property for replacement cost value
- General liability protection – insures against claims of bodily injury or property damage by someone injured at the business as well as the cost of defending lawsuits
Normally, companies in California with 100 employees or under and revenues of up to about $5 million or less can get a business owners insurance policy quote. If your company is in a “low risk” category, your become eligible to purchase a BOP insurance quote. To keep liability and other insurance rates down, owners should take precautions to prevent accidents. If appears to have a higher degree of risk, that business will pay more for premiums or may have difficulty getting coverage at all.