Commercial Insurance For Southern California
This coverage is a mono line policy intended to protect the insured (by defense, and paying covered claims) when sued. It has several limits, each with a different purpose.
Typically a policy will have a limit of $1,000,000 for any one claim brought against the named insured. This coverage will address Premises Liability, Contractual Liability and more. There is an Aggregate (or maximum amount) typically $2,000,000, which is the most the Carrier will pay out in any year’s policy.
There is a Medical limit. The Products and Completed Operations limit addresses the work accomplished. For instance a Contractor, or Manufacturer creates a product. In time the result of that product may be the cause of a claim resulting in not only the loss of the product, loss of income due to this and a variety of related losses caused by the product’s failure to property or persons. Then there is Tennant Liability which covers damage done to your location, by you (or an employee) in property rented by you.
Many factors play into the choice of CGL. Whether defense is within the limits, is it Occurrence based or Claims Made, the AM Best rating of the Carrier (it’s stability), is it Excess or Admitted, can adequate Additional Insured’s be obtained and at what cost, what wording will be allowed on Certificates, is there Contractual coverage, what are the Sub limits? What Exclusions apply and what Audit procedures apply to name a few.