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Welcome to 2008. We hope you all had a great holiday season.
One of he most important pieces of insurance you will buy is your General Liability Policy. Many businesses will require a certificate of General Liability insurance to show proof that the coverage is in place.
General Liability provides protection when you are legally liable for bodily injury or property damage. If also provides defense if someone alleges you caused bodily injury or property damage. The duty of the insurer to defend you is generally broader, than the duty to indemnify. The basic Components of a General Liability policy are:
Occurrence Limit – The maximum that would be paid on any one loss that occurs during the policy term. In most cases defense costs are outside this limit.
Aggregate Limit – The maximum that would be paid in any one policy period. Generally it is 2 times the per occurrence limit.
Product or Completed Operations Limit – Provides coverage for a product you sell or service you provide after it has left your premises or you have completed the service during the policy term.
Advertising and Personal Injury Limit – Provides liable and slander coverage.
Legal Liability Limit – Provides coverage for the space you rent if damage to that space takes place. If the damage exceeds the space you rent your occurrence limit will kick in.
Medical Payments – Usually this is a very small limit that allows you to pay the medical payments if someone is injured on premises without regards to Legal Liability.
Other items included are Owners Contractors Protective (OCP), and Contractual coverage – written and implied. If you have further questions, please contact our office.
Please note: J. Michael Low is a former AZ Director of Insurance, and is the founding partner and an attorney with Low & Childers, PC of Phoenix, AZ. He is still practicing full time and has agreed to help Low & Johnson on certain coverage and claims issues relating to insurance. He is not issuing legal opinions or legal advice on behalf of Low & Childers. Mr. Low is a licensed property and casualty producer in the state of Arizona.
Any questions please give me a call or e-mail. Also, we keep the insurance tips newsletter an various topical insurance issued posted on the Low & Johnson web site www.lowjohnson.com.