Limits Of General Liability Insurance Cover

General liability insurance coverage is an insurance coverage, which covers any costs that may occur as a result of a third party taking a legal action against the business, because of any bodily injury or damage to the property caused to them by the business. It provides broad coverage for difficult situations, generally faced by a business. However, only general liability insurance does not cover everything. That is why it is important to find out just how far liability coverage actually extends.

General liability insurance will cover the following:

• Medical compensation – It covers the medical costs of a person who is injured or dead, as a result of injury in the premises of business.
• Personal injury claims - covers legal costs in the case if anyone sues for personal injuries.
• Advertising injury claims - it covers injuries caused by business while advertising.

General Liability Insurance Will Not Cover
General liability insurance policy may not be able to cover all legal costs. These are the liability costs that are not covered by general liability insurance policy:

• Lawsuits by the employees - this will be covered under workers' compensation.
• Failing to perform professional services - this is covered under professional liability.
• Anything done by an executive - this is covered by directors & officers insurance policy.
• Pollution caused by the business - this is covered under environmental liability insurance.
• Lawsuits over recalled products - they are not covered by any insurance policy.
• General liability insurance policies does not cover punitive damages, because they are considered to be punishment for intentional acts.

Along with the above said liabilities which are not covered by the general liability insurance policy there are two more limits to this policy. They are

Each Occurrence Liability Limit:
It is also referred to as a “per occurrence”. It is possible to have multiple claims made against a policy within a single 12-month policy term. The “each occurrence” limit is the maximum amount an insurer will pay for damages resulting from one claim or single occurrence.

Aggregate Liability Limit:
Aggregate Liability Limit is the maximum amount of money which an insurer pays for the insured regardless of the number of the claims filed within one policy period.

So while purchasing a commercial general liability insurance policy the owner should prefer a policy which includes liability for premises and operations coverage, personal and advertising injury, and products and completed operations etc.,