General Liability Insurance Limits Explained

General liability insurance can help Mississippi businesses handle common risks, such as lawsuits and third-party claims, but even the most robust policies may have limitations. Knowing your general liability policy’s limits is important for managing losses and avoiding unexpected out-of-pocket costs.

What Are General Liability Insurance Limits?

General liability insurance may help cover costs if your business is held responsible for third-party injuries, property damage or certain legal claims. The “limits” on your policy refer to the maximum amount your insurer may pay for covered claims. These limits are typically split into two main categories:

• Per– occurrence limit is the most your policy may pay for a single claim or incident.
• Aggregate limit refers to the total amount your policy may pay for all covered claims during the policy period, usually one year.

Factors That Influence the Right Coverage Amount

Choosing the right policy limits may depend on several factors unique to your business, such as:

• Industry risks: Some industries, such as construction or hospitality, may face greater risks and require higher limits.
• Business size: Larger businesses or those with more employees may require higher limits.
• Contract requirements: Clients or landlords may require specific coverage limits in contracts or leases.
• Location: Local regulations or the likelihood of lawsuits in Mississippi may affect the limits you choose.
• Assets at risk: The more assets your business has, the more coverage you may want to consider.

Common General Liability Policy Exclusions

Standard policies typically exclude coverage for the following:

• Professional errors or advice
• Employee injuries
• Intentional or fraudulent acts
• Damage to your own business property

Reviewing these exclusions can help you understand how extra policies or endorsements may address gaps.

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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.