General Liability 101

Have you ever looked at your General Liability declarations page, or any declarations page for that matter, and just felt like you were staring at a book written in a foreign language you don’t speak? Well, in this post, we’re going to break down the general liability deck page in a way that is quick and easy for you to understand.

So your general aggregate limit, typically the top line shown on that page, is the annual limit you have on that policy which is typically 
$2 million per year.

The next line you see is your per occurrence limit, given that your policy is an occurrence-based policy. So that will be the limit that you’re policy will pay for 1 claim in that year. So you’ve got 
$1 million per occurrence, or $2 million total for the year of coverage on that policy.

Number three, typically, you see 
“damage to rented premises.” This one is fairly easy to understand. If you rent a space, office space, warehouse, or any other property, and you cause damage to that building, property, or whatever it may be, this line covers any damage you may do to that property. This coverage will default, in most cases, to either $100,000 or $300,000. If you need a higher coverage limit, your agent can request to increase that coverage on your policy. 

Next, you’ll see the 
personal injury/advertising limit on the policy. And that is going to cover things such as any false advertising claims.

Next, you see products and completed operations. This spans various industries, whether it be manufacturing or any business in which you make a product. If something happens with that product that causes someone to get hurt, then you have coverage to protect yourself in the event of a lawsuit. Let’s say you’re a pogo stick manufacturer; someone’s jumping up and down on the pogo stick, something is faulty on the pogo stick, and they break their ankle and sue you for the injury. Products and completed operations coverage will kick in to cover that claim.

You’ll also see that asked a lot on contracts in the construction industry. If you’re going to work for a larger contractor or home builder, they’ll ask for an additional endorsement on the policy to enhance that completed operations coverage further.

You have 
the medical expense or medical payments. This is money that you can access quickly to help someone pay a deductible on health insurance, pay out of pocket for a chiropractor visit, etc. If they have to get immediate medical care, maybe they were hurt on your property, fell, tripped on the ladder, or something like that. You can access that medical expense resource quickly to help them out.

And then you have your 
deductible, the portion of the claim you will be financially responsible for. If you have a claim resulting in $15,000 of damage and you have a $1,000 deductible, then you will pay the first $1,000, and the insurance company will pay the remaining $14,000. 

​So that summarizes the basics of the declarations page and the coverages that are afforded on your policy. If you have any questions feel free to reach out to us. You can email us at, connect with us on any social media site or call us at 480-613-8387. 

Start Your Quote Here

Are you ready to save time, aggravation, and money? The team at PrimeRisk Insurance Solutions is here and ready to make the process as painless as possible. We look forward to meeting you!