Learn about general liability insurance with more frequently asked questions about our coverage.
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When you’re ready to explore coverage options for your business, you can get an instant quote online and purchase insurance within a few minutes.
What is the difference between Professional Liability and General Liability?
We get this question a lot. In fact, we even created a blog post that covers the many nuances of professional liability vs. general liability. Here’s a quick overview:
Professional liability insurance and general liability insurance offer similar benefits but there is one major difference — professional liability insurance covers professional mistakes and accusations of neglect. It’s often related to advice that you provide to a client or customer, not accidents that happen at the workplace.
General liability insurance provides financial protection for accidents that are more physical in nature, such as property damage and injuries involving people who are not your employees. It also covers expenses related to accusations of libel, slander and copyright infringement.
Professional liability covers your finished work but does not cover accidents or damage caused to other people or their property.
What is General Liability aggregate?
General liability aggregate is a common insurance industry term that you’ll run into when you are exploring options for this coverage. Basically, it’s the maximum amount of money an insurance company will pay out during your policy term, which is usually one year.
If your business has too many claims in one year, you might hit your aggregate limit. In that case, you would be responsible to pay out of pocket to cover remaining expenses.
Note that the aggregate limit is different from the “per occurrence” limit, which is the maximum amount your policy pays out per claim within the term of your policy.
For example, if you have a general aggregate liability limit of $300,000 and you’ve already made three claims in your policy term (usually a year) for $100,000 each, you’ve reached your aggregate limit and your insurance company won’t cover any additional claims.
It’s important to know your aggregate limit when you purchase general liability insurance. If you exceed your limit during your policy term, you will be responsible for paying for any expenses out of pocket that exceed the limit.
Learn more about aggregate limits with liability insurance.
Does General Liability insurance include Product Liability insurance?
If you already have a general liability insurance policy with NEXT, is included to help cover injuries and damages caused by your products.
If you don’t already have a general liability insurance policy, you will need to buy one to get product liability coverage. You cannot buy product liability on its own.
Does commercial General Liability insurance cover automobile liability?
General liability insurance does not cover automobile liability or any expenses related to business or personal driving.
Add commercial auto insurance to your insurance package if you drive for business reasons. It can help cover expenses for:
- Injuries if you are responsible for an accident
- Property damage to other people’s property
- Repairs for your vehicle
- Towing and rentals if your vehicle is damaged
Learn more about commercial auto coverage.
Does commercial General Liability insurance cover theft?
General liability insurance doesn’t cover the theft of your own possessions but it might cover the theft of your client’s stuff.
If you’re repairing a garage door for a homeowner and someone steals her bike while you’re out back, general liability could help pay for a replacement. But if any of your personal or business items are stolen, you won’t be covered without additional insurance.
You can bundle tools & equipment insurance with your Next Insurance general liability coverage if you are a contractor or own a cleaning business.
Will General Liability protect me if my tools get stolen?
If you’re a contractor or own a cleaning business, you can add tools & equipment insurance to protect your belongings if they are damaged or stolen. General liability won’t provide tools and equipment coverage if you don’t add this upgrade to your insurance package.
You might consider adding tools and equipment coverage if you work frequently at different locations because it will provide financial protection for your equipment wherever you go. For example, if there’s a water leak at the new house you’re building and your power tools get soaked, your insurance could help pay for new tools.
Learn more about tools & equipment insurance.
Does General Liability insurance cover employee injuries?
General liability insurance can help pay for expenses if your business is accused of causing an injury, but injuries to you or your employee are not included.
You’ll need workers’ compensation insurance to help pay for medical expenses and lost wages if an employee is hurt on the job. Most states legally require you to purchase coverage as soon as you hire an employee. It also provides benefits for business owners if they get hurt on the job.
Learn more about workers’ compensation insurance.
What other types of insurance do I need besides General Liability insurance?
General liability insurance offers protection for a variety of business-related incidents, but you might also want to consider adding other types of insurance to be fully protected.
Are you a contractor or cleaner? If so, you might want to add tools & equipment coverage to protect your gear if it is damaged or stolen.
Are you worried about clients blaming you for mistakes? For that, you’ll need professional liability insurance, also known as errors and omissions insurance.
Do you have any employees? You should definitely get workers’ compensation insurance, particularly because it’s legally required in most states.
Do you drive a vehicle for work? If so, you’ll need commercial auto insurance.
How much General Liability insurance do I need?
There is no cut-and-dry answer to this question. Each business is unique and has unique insurance needs.
Factors that will influence the coverage you need, include:
- The type of work you do
- How many employees and subcontractors you have
- The level of risk your company faces
- The state where you work
When you complete an instant quote online with Next, you can review options and adjust limits to your preference.
When will I get my policy documents and proof of insurance?
One thing that sets us apart from other insurance companies is our ability to deliver the insurance coverage you need quickly. It can take less than 10 minutes to purchase coverage and you’ll have instant access to policy documents and your certificate of insurance.
When your coverage is active, you can access your documents and COI from your online account 24/7.
Learn more about our digital certificate of insurance.