Comparing Business Liability Insurance Coverage

You've taken the advice offered by others to get multiple quotes for business liability insurance. Now you must compare and decide which quote is best for your needs. But, what is the best way to begin comparing them?

Check Those Limits

Business liability insurance includes separate limits for different types of coverage. Comparing policies begins with comparing the policies' limits.

For example, business liability insurance may include $1 million per occurrence (the most the policy will pay for a single-covered claim) and $2 million general aggregate (the most the policy will pay for all covered claims during the policy period). There are additional limits for products/completed operations (applies to claims arising from the policyholder's products or finished work), medical payments (applies to claims for medical expenses incurred by a third party regardless of fault) and others.

Compare limits first, keeping in mind higher limits are usually available and always recommended.

Check That Policy

A review of key areas of your business liability insurance coverage will help determine if the coverage will meet your business' needs.

First, review what is covered and what is not covered under the policy. This will help you identify areas of concern that may be addressed by adding additional liability coverage or purchasing a separate policy. For example, a policy that will not cover damage arising from completed operations is not ideal for a homebuilder.

Next, review who is covered under the policy. Make sure all your employees, partners, family members, volunteers, other business ventures or any other entity requiring access to your business liability insurance limits is included.

When comparing coverage be sure to consider any contractual liability you may have arising out of contracts or agreements you made with other businesses. The liability policy should be very specific regarding the extent contractual liability is or is not covered.

Interpreting what is covered and not covered under a business liability insurance policy is difficult. Seeking the advice of an insurance company representative or insurance agent may be the best way to help identify potentially harmful gaps in your business' liability coverage.

Check That Service

If the nature of your business keeps you in constant need of certificates, endorsements or other services from your business liability insurance company, make sure you choose an insurance company or agent who can process your requests promptly and easily.