A General Liability policy will include an Each Occurrence Limit and a General Aggregate Limit.

 

Each Occurrence Limit: Is the most the company will pay for Bodily Injury and Property Damage arising out of any one occurrence.

 

General Aggregate: Is the most the company will pay for Bodily Injury and Property Damage durring the policy term.

 

 

Here is a quick video that explains The Each Occurrence and General Aggregate Limit of a General Liability Policy:

 

 

 

Sample General Liability Policy Limits:

 

Let’s say a Business has the following limits:

  •  Each Occurrence Limit of: $1,000,000 

  •  General Aggregate Limit of: $2,000,000

 

Extreme Claim Examples for One Business (during the same policy term):

 

  •  Claim #1: The Business is determined to be Liable and required to pay a settlement of $1,100,000
  •  The Insurance Company will pay $1,000,000 (the each occurrence limit) leaving the Insured to pay the remaining $100,000

 

  • Claim #2: The Business  is determined to be Liable and required to pay a settlement of $1,000,000  
  •  The Insurance Company will pay the full claim

 

  • Claim #3: The Company is determined to be Liable and required to pay a settlement of: $50,000
  •  The Insurance Company will pay $0 because the General Aggregate limit of $2,000,000 has been completely exhausted by the 2 prior claims.

 

 

Policy Limits: 

 

If you are a Business that is involved in Business to Business Sales, the policy limits you have will likely be determined by the partnerships you have - example:  

 

  • A Manufacturer that will sell their products at a major retailer, will be required to comply with the Liability Limit Requirements of the Retailer.  

  • A Missouri Contractor will have to comply with the requirements of Building Owners or if they are a subcontractor, they will have to meet the requirements of the General Contractor(s). 

  • A Restaurant, that does not own their building will have to comply with the Liability requirements of the Landlord

 

 

Call (636-519-0059)  or email today for a General Liability Proposal for your Business

 

 

 

Posted by:  Dan@hebbeln-ins.com 

 

 

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