Question 1

1.) Are there any mandatory requirements for general liability insurance?

Accepted Answer

New York and New Jersey don’t require every business to carry general liability insurance, but some industries and licensing rules do. For example, public works contractors often need a minimum level of liability insurance and include the state or agency as an additional insured. Similarly, professional or trade licensing boards may also require general liability coverage along with professional liability policies.

Question 2

2.) How do policy limits and deductibles work in general liability insurance?

Accepted Answer

Policy limits in general liability insurance are normally quoted in a two-part format - the occurrence limit and the aggregate limit. The occurrence limit is the maximum the insurer will pay for a single claim or incident, such as $1 million per occurrence. The aggregate limit is the maximum total the insurer will pay during the policy period. Deductibles in General Liability are fairly uncommon. However, some insurers offer or require small per-claim costs or retentions, especially for higher-risk operations.

Question 3

3.) What are common exclusions in a General Liability insurance policy?

Accepted Answer

Most policies exclude professional services (those requiring specialized training or giving advice) as these need professional liability coverage. They may also exclude intentional acts, criminal wrongdoing, pollution, nuclear hazard, automobile liability (handled under auto policies), workers’ compensation claims, and property damage.

Question 4

4) What are additional insured endorsements, and why do landlords or clients often require them?

Accepted Answer

Additional insured endorsements allow a third party like a landlord, client, or contract counterpart to enjoy coverage under your general liability policy for claims arising out of your operations or negligence. Landlords who have multiple tenants and significant liability exposure prefer being named to protect themselves if they’re sued due to tenant action. Clients who host contractors, vendors, or subcontractors often demand additional insured status to avoid getting dragged into lawsuits.

Question 5

5.) What’s a certificate of insurance (COI), and what should I look for?

Accepted Answer

A certificate of insurance (COI) is a document your insurer issues to prove coverage. It summarizes important details like the insurer, policy number, effective and expiration dates, coverage types, limits, and key endorsements. Clients, landlords, licensing boards, or government agencies will ask for a COI to confirm you meet contractual or regulatory requirements. Always check that the COI matches your contract’s minimum limits, named additional insureds, and dates. Otherwise, you may fail to meet your obligations, or find your claim invalid if something goes wrong.

Question 6

6.) Does general liability insurance cover lawsuits over online content or advertising?

Accepted Answer

Standard general liability insurance includes "personal and advertising injury" coverage, which typically responds to claims like libel, slander, copyright infringement in ads, or false advertising. This is especially important in our digital age. A third party could sue if they believe your website misrepresented their product, published defamatory text, or used their logo without permission.

Question 7

7.) What is a waver of subrogation and do I need it?

Accepted Answer

A waiver of subrogation in your general liability insurance policy means the insurer gives up its right to pursue a landlord, client, or other third party that contributed to a loss. This is often required in contracts to ensure that your insurer won’t sue the client or landlord after paying a claim, even if that party was partly at fault. If a contract demands a waiver of subrogation, do not rely on your policy’s generic wording; and be sure to secure a proper endorsement if needed.

Question 8

8.) What factors affect general liability insurance premiums?

Accepted Answer

Pricing for general liability insurance depends on your industry code, payroll, revenue, location, claims history, and other underwriting data. Riskier trades like contractors, restaurants, and physical retail shops pay more than low-risk industries. Underwriters also look at your loss-run history. A clean five-year record helps, while past claims raise rates significantly. Limits and deductibles influence premiums too. Higher limits cost more, but higher deductibles result in lower premiums. Policy endorsements and the addition of optional coverages may add modest fees as well.

Question 9

9.) What are "claims-made" vs. "occurrence" general liability insurance policies, and which should I pick?

Accepted Answer

General liability insurance policies are almost always written on an “occurrence” basis, meaning that a claim is covered if the event happened while the policy was active, even if the claim is filed later. An occurrence form gives peace of mind that if you had coverage at the time of the incident, you’re covered even if a claim is filed after the policy expires. If your insurer offers a claims-made variant, be very careful because coverage may expire abruptly without “tail” coverage and leave you on the hook later. A claims-made policy covers claims that are reported during the policy period, but only if the incident happened on or after your policy’s “retroactive date”, which is almost always when the policy started.

Question 10

10). How often should I review or renew my general liability insurance policy?

Accepted Answer

Your general liability insurance policy should be reviewed annually, or more often if your business grows, takes on new risks, or expands across states. Regular reviews let you optimize limits, add endorsements, drop obsolete exposures, and ensure alignment with emerging compliance demands. Insurers must disclose changes in form language or major rate changes to policyholders clearly at renewal. Be on the lookout for updated proposals, compare coverage vs. price, and confirm that all contractually mandated endorsements are preserved or improved. Ask us for help in understanding if anything in your policy changed at renewal.

Question 11

11.) What if I get sued? How does my general liability insurance policy help?

Accepted Answer

Your insurer typically assigns a defense attorney, pays defense costs, and negotiates or litigates the claim. Your policy may also provide supplementary payments for court costs, bail bonds, or loss of earnings. Upon a settlement or judgment, your insurer pays up to policy limits. However, be aware of “duty to defend” vs “duty to indemnify.” Most general liability insurance policies impose a duty to defend broadly. This means insurers defend not just covered claims, but any claim alleging covered damage, even if the claim isn't ultimately valid. That is vital since without it, you might be stuck in civil litigation defending yourself without legal support. Keep your insurer informed, cooperate fully, and don’t jeopardize coverage with silence or misstatements.

Question 12

12.) Can I get general liability insurance as part of a business wners policy (BOP)?

Accepted Answer

Yes, a BOB bundles general liability and commercial property coverages. They are ideal for small businesses, but they do have fixed limit choices and may lack flexibility. Depending on your business, you might need higher occurrence limits, special endorsements, or specific extra coverage not included. In both New York and New Jersey, BOPs are common in small retail, office, or light-service domains, but if you add unique risks (like pollutants, high-limit liability, complex contracts), upgrading to standalone CGL with tailored endorsements may serve you better.

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1.) ¿Existen requisitos obligatorios para el seguro de responsabilidad civil general?

2.) ¿Cómo funcionan los límites de póliza y los deducibles en el seguro de responsabilidad civil general?

3.) ¿Cuáles son las exclusiones comunes en una póliza de seguro de responsabilidad civil general?

4) ¿Qué son los endosos asegurados adicionales y por qué los propietarios o clientes a menudo los exigen?

5.) ¿Qué es un certificado de seguro (COI) y qué debo buscar?

6.) ¿El seguro de responsabilidad civil general cubre demandas por contenido o publicidad en línea?

7.) ¿Qué es una renuncia de subrogación y la necesito?

8.) ¿Qué factores afectan las primas del seguro de responsabilidad civil general?

9.) ¿Qué son las pólizas de seguro de responsabilidad civil general por "reclamos presentados" y por "ocurrencia", y cuál debería elegir?

10) ¿Con qué frecuencia debo revisar o renovar mi póliza de seguro de responsabilidad civil general?

11.) ¿Qué pasa si me demandan? ¿Cómo me ayuda mi seguro de responsabilidad civil?

12.) ¿Puedo obtener un seguro de responsabilidad civil general como parte de una póliza de propietario de negocio (BOP)?

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