General Liability Insurance for Businesses

Per-occurrence is the most the policy pays on a single claim event. The aggregate is the ceiling for all covered claims in the policy period. Most GL policies carry two aggregates — general aggregate for premises and operations, and products-completed operations aggregate for finished work and sold products. Once paid claims and defense costs exhaust an aggregate, there is no more coverage under it for that year. Check both limits, not just the per-occurrence number.

An additional insured endorsement can give a specified party insured status for defined claims connected to your operations, work, or premises. A certificate alone does not grant or amend coverage. Primary-and-noncontributory and waiver language require separate policy provisions when requested. Compare the contract with the actual endorsements.

Generally, GL is not the policy used for direct loss to your own building, equipment, or inventory. Commercial Property or Inland Marine may be relevant instead. GL also contains exclusions affecting property in your care, custody, or control and the particular part of property being worked on. The wording and facts determine whether a third-party property-damage claim is covered.

Completed operations covers third-party claims tied to work you've already finished. Once a job is signed off, the exposure doesn't end — it shifts to completed-ops. Most standard GL policies include it under a separate aggregate. Some high-risk trades face restrictions. If your work remains in buildings or systems after you leave, that aggregate is worth reviewing. Long-tail work means long-tail exposure.

It depends on the policy, endorsements, contract, and facts. Some forms restrict subcontracted work or impose conditions involving written agreements, certificates, or subcontractor insurance. A certificate alone does not amend coverage. BLIS can compare those requirements with how the business manages subcontractors.

GL covers bodily injury and property damage from operations, premises, products, and completed work. Professional Liability covers financial loss a client claims because of an error, omission, or negligent professional act. Standard GL excludes professional services claims. Physical jobsite injury is a GL matter. A negligent design or advisory error is a Professional Liability matter. Operations that involve both physical work and professional advice often need both lines.

There is no universal limit. Operations, contract requirements, the value of surrounding property, potential injury severity, and available umbrella capacity all matter. BLIS can compare requested limits and endorsements with the terms offered by available insurers; the business should also review legal and contractual obligations with its advisers.