General Liability Insurance in Pennsylvania

What does the general liability insurance cover?

General liability insurance covers several important areas to protect your business against common risks:

1. Bodily injury: If someone is injured on your business premises or due to your operations, the policy can cover medical expenses, legal fees, and settlements. For example, if a customer slips on a wet floor in your Pennsylvania store, general liability insurance can handle the associated costs.
2. Property damage: If your business activities cause damage to someone else’s property, this coverage pays for repairs or replacement costs. For instance, if a contractor accidentally damages a client’s property while on the job, the insurance will cover the damages.
3. Personal and advertising injury: This includes claims of defamation, libel, slander, or copyright infringement arising from your advertising or promotional activities. For example, if a competitor sues you for using their copyrighted material in an ad, your policy can help cover the legal defense costs.
4. Legal defense costs: General liability insurance covers the costs of defending your business against covered claims, even if the claims are groundless.
5. Medical payments: Some policies include coverage for minor medical expenses if a third party is injured on your premises, regardless of fault. This helps avoid costly lawsuits by addressing claims quickly.

Does general liability cover product-related damages and injuries?

General liability insurance can cover product-related damages and injuries, but this depends on the specific terms of your policy. Many general liability policies include product liability coverage, which protects your business if a product you sell, manufacture, or distribute causes injury or property damage. For example, if a customer in Pennsylvania is injured by a defective product you sold, your general liability insurance may cover medical expenses or legal fees associated with the claim. However, businesses with significant product risks should consider adding dedicated product liability insurance for more comprehensive protection.

Does general liability insurance cover subcontractors or third-party contractors?

General liability insurance generally does not automatically cover subcontractors or third-party contractors. While your policy protects your business, subcontractors are typically required to carry their own insurance to cover their operations. If a subcontractor causes damage or injury while working on your behalf in Pennsylvania, your general liability insurance might only offer limited protection, and you could still be held liable. To avoid gaps in coverage, ensure your subcontractors carry their own insurance and name your business as an additional insured on their policies.

Do home-based businesses need general liability insurance coverage?

Yes, home-based businesses need general liability insurance. While working from home may seem low-risk, you still face potential liabilities, such as client injuries during visits, damage to a client’s property during a project, or lawsuits over advertising issues. For instance, if a customer visits your Pennsylvania home office and trips, your homeowners insurance likely won’t cover the claim. General liability insurance fills this gap, ensuring that your home-based business is protected against unexpected risks and financial losses.

What factors affect the cost of general liability insurance?

The cost of general liability insurance in Pennsylvania depends on several factors specific to your business. These include:

1. Industry or business type: Certain industries have higher risks. For example, a construction company may pay higher premiums than an office-based business because of the increased likelihood of accidents or property damage.
2. Business size and revenue: Larger businesses or those with higher revenue typically face greater exposure and may have higher premiums.
3. Location: The geographic location of your business in Pennsylvania can impact costs. Businesses in urban areas or regions with higher claims activity may have higher premiums.
4. Coverage limits: Higher policy limits provide more protection but come at a higher cost. For example, a policy with a $2 million limit will cost more than one with a $1 million limit.
5. Claim history: A history of prior claims or lawsuits can increase your premiums, as insurers view businesses with claims as higher-risk.
6. Number of employees: The more employees you have, the greater the exposure to risks like accidents or injuries, which can affect your insurance costs.
7. Optional coverage add-ons: Adding endorsements or expanding coverage, such as including product liability or professional liability, can increase premiums.

How can businesses in Pennsylvania obtain general liability insurance? 

Reach out to the independent agents at Miller Financial Group for a fast quote on general liability insurance in Pennsylvania. Our knowledgeable team is here to help businesses of all sizes find the right coverage to protect against unexpected risks. Whether you’re running a small home-based business or managing a large operation, we’ll customize a policy that meets your specific needs and budget. Don’t let potential liabilities jeopardize your hard work—contact us today for expert guidance and reliable protection that gives you peace of mind.