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How should I select a General Liability policy for my business?

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General liability insurance is not a one-size-fits-all market, so take your time and shop around. Before you talk to insurance providers, think about what your exact needs are. Consider the various types of supplemental coverage and decide whether you think you will want to purchase any of these policies in addition to general liability.

Next, consider your company�s history of liability. Has your company suffered from lawsuits in the past? If so, what was your total costs arising from the lawsuit? If not, what are your primary areas of lawsuit risk? Talk with other companies in your industry to see what they would suggest and what claims they have faced in the past.

Once you have some idea of the kind of policy you want, talk with several different insurance providers. If some of your peers at other companies have suggestions, you can start there. Another option is to look for a provider with experience in your industry; someone who understands the industry is more likely to grasp the nuances of your situation. In any case, when you ask for premium quotes from providers, use the same policy specifications so that you can easily compare the results. Even if you don�t ultimately use that exact policy, this comparison should show you which providers are the most economical.

Finally, make sure you read the fine print carefully and ask plenty of questions. Nail down exactly what you need to do in the event of a claim. Discuss with an insurance provider how you will work together to choose an attorney and who will make settlement decisions. Determine exactly what kinds of incidents are covered and which kinds are not. Calculate your premiums and deductibles. Get all of your answers now�long before a claim is made against you.

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