General Liability Insurance in California

What is general liability insurance?

Most California businesses face certain common risks, such as someone being injured at a company facility or the claim that an employee defamed a competitor. While some risks might seem remote or unlikely, these are real problems that almost any business can face. They’re also problems that general liability insurance can usually help protect against.

General liability insurance provides protection against a variety of everyday risks that businesses face. Policies normally help pay legal fees and settlements if there’s a covered claim.

Which California businesses should have general liability insurance coverage?

General liability insurance coverage is a widely applicable protection. The majority of California businesses should probably have coverage, as just one liability lawsuit could be devastating.

This is one insurance that’s commonly purchased regardless of business industry, size or location. If you’re in business, you probably face at least some risks that general liability can help protect against.

Do home businesses need general liability insurance coverage?

Home businesses might have reduced risk exposure, but they typically face some liability risks that they’re ill-equipped to manage without insurance. Most home businesses should consider liability coverage even if they think risks are unlikely.

In some cases, homeowners policies might include basic business insurance coverages. Even if it’s not included as a standard protection, some general liability protection may be available as an option. This tends to be the most affordable option if coverage is indeed available, and if it suitably meets a home business’s needs.

When homeowners insurance doesn’t offer any or adequate coverage for a home business, General liability insurance coverage might have to be purchased through a separate policy.

An insurance agent who specializes in general liability insurance coverage for small businesses can help sort out the best way for home businesses to procure the coverage they need.

What protections are included in general liability policies?

General liability policies usually come with multiple coverages. The following are included within most policies:

• Premises Liability Coverage: May provide protection for incidents occurring at a business’s facility, store, office or other facility.
• Bodily Injury Coverage: May provide protection for incidents causing injury to third parties, such as customers, vendors or visitors.
• Property Damage Coverage: May provide protection for incidents causing damage to third-party property, such as belongings or buildings.
• Personal Advertising Injury Coverage: May provide protection against lawsuits that allege slander, libel or false advertising.

All of these coverages should be reviewed carefully with a knowledgeable insurance agent, but businesses might want to pay special attention to personal advertising injury coverage. An increasing number of policies include coverage for online statements, such as those made on blogs and social media, but a few policies might provide only limited protection against defamatory statements made online. A knowledgeable insurance agent will be able to confirm that a policy provides robust protection for this and other risks.

Does general liability cover injuries and damage caused by products?

Businesses that manufacture or sell products could face risk exposure if their products cause injury or property damage. Typically, such incidents fall under product liability coverage.

Certain general liability policies may include limited product liability coverage. However, product liability is not always included, and when it is, the coverage can be quite limited.

Businesses that require substantial product liability coverage should consider purchasing a separate product liability policy that provides more robust protection for product-related risks. Those that only need minimal product liability coverage may search for a general liability policy that includes limited coverage.

How can California businesses acquire general liability insurance?

While general liability is available as a stand-alone protection in its own policy, it is more commonly purchased alongside other coverages. A business owners policy (BOP) typically combines general liability with other commonly needed coverages. A commercial package policy (CPP) generally typically merges general liability with other coverage options that can be quite customized. Most businesses opt for either a BOP or a CPP policy.

For assistance in finding general liability insurance through any of these policy types, contact the independent insurance agents at Shannon Ellsworth Insurance. Our California agents can help you compare insurance options from multiple insurance companies and will work with you to determine the best way to get general liability coverage for your business.