Understanding Coverage Limits in General Liability Policies

As a business owner, understanding the details of your general liability insurance is important for financially protecting your company from unexpected risks. One of the most important aspects of any policy is the coverage limit.

At Fast Insurance, we believe that knowing how these limits work can help you make informed decisions about your general liability policy.

What Are Coverage Limits?

Coverage limits define the highest amount your general liability policy can pay for a single claim (per occurrence) and for all claims during the policy period (aggregate limit).

For example, if your policy has a $1 million per occurrence limit and a $2 million aggregate limit, your insurer may pay up to $1 million for any one claim and up to $2 million for all claims combined within the policy year.

Why Do Coverage Limits Matter?

Choosing the optimal coverage limits is crucial for safeguarding your company’s finances. If a claim exceeds your policy’s limit, your business may be responsible for paying the difference out of pocket, which can be financially devastating for your business, particularly if the claim is costly.

Factors That Influence Your Coverage Needs

Every business is unique, and several factors can affect the coverage limits you may need, including:

• Type and size of your business
• Industry
• Number of employees
• Contractual obligations
• Potential risks specific to your operations

How We Help Arizona Businesses

Our experienced agents are here to assess your needs and help you select coverage limits that offer the right level of financial protection for your business at a reasonable price. We’re committed to making the process straightforward and helping you reduce your exposure to risks.

Ready to review your general liability coverage or have questions about your policy limits? Contact Fast Insurance today to speak with our team.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.