YOU ASK:

Can I find general liability insurance for the small business?

WE ANSWER:

Small business general liability insurance coverage is available through a Businessowners policy (BOP) which is specifically designed to cater for the insurance needs of small and medium-sized businesses. The general liability insurance for the small business that a BOP provides is very similar to the Commercial General Liability policy, the major exception being that the former is usually cheaper.

Characteristics of BOP's Small Business General Liability Insurance

  • Coverage.

    The business general liability section of a Businessowners policy includes coverage for liability arising out of incidents causing bodily injury, property damage, or personal and advertising injury.

    In addition to these, a Businessowners policy provides coverage for third-party medical expenses, irrespective of fault or liability. This means that any person who suffers bodily injury as a result of the business operations of the insured or on premises owned by the insured, can get compensation for their medical bills incurred within a year of the incident, without having to resort to filing a liability claim in court. It is important, however, that the injured party reports the incident no later than a year after the incident.

    Small business general liability insurance provides protection not only to business owners, but also to any employees of the owner, who might be exposed to contingent liability.

  • Insureds.

    Small business general liability insurance has certain professional liability endorsements available to pharmacists, vets, printers, barbers, beauticians, and funeral directors.

  • Claims.

    The business liability insurance coverage is typically written on an occurrence basis, i.e. what matters is not when a liability claim is filed, but when the incident has occurred for a claim to be covered under the policy.

    The insurer agrees to cover the legal defense costs of the insured over and above the policy limits, provided that the liability claim is covered under the Businessowners policy.

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