If you have a business in Florida you need Florida commercial general liability insurance. We will help you get the coverage you need to protect your business and assets. See the list below for businesses we write.
WHAT DOES FLORIDA COMMERCIAL GENERAL LIABILITY INSURANCE COVER?
Liability insurance, also called Commercial General Liability (CGL), covers four categories of events for which you could be held responsible: bodily injury; damage to others’ property; personal injury, including slander and libel; and false or misleading advertising. CGL coverage pays for the injured party’s medical expenses. It excludes your employees, who are covered by workers’ compensation. (For details see workers’ compensation section of this site.) Bear in mind that even trespassers can sue you if they fall and get hurt on your business premises!
There are three types of legal damages people may sue you for that are typically covered by a CGL policy:
- Compensatory damages: financial losses suffered by the injured party and future losses they may suffer resulting from an injury they claim in the lawsuit.
- General damages: non-monetary losses suffered by the injured party, such as pain and suffering or mental anguish.
- Punitive damages: additional penalties and charges the defendant must pay.
WHAT MIGHT NOT BE COVERED BY FLORIDA COMMERCIAL GENERAL LIABILITY INSURANCE?
Standard Florida commercial general liability insurance does not protect a business against:
- Claims from sexual harassment, wrongful termination of employees, failure to employ or promote, or race and gender lawsuits. These and other employee-related claims are covered by employment practices liability coverage. The cost of employment practices liability coverage depends on a business’ number of employees, whether there is a history of the company having been sued in the past, and other business risk factors. The policy also pays for legal costs associated with a company’s defense of a lawsuit related to employment practices.
- Claims related to operating an automobile or truck. If you own vehicles for your business, whether for deliveries or client consultations, you will need separate commercial automobile coverage to protect you and your employees against liability claims resulting from car accidents.
Automobile liability insurance is required by most states. It covers medical expenses and damages to another person’s property as a result of a motor vehicle accident caused by the insured’s negligence. Some states mandate “no fault” auto insurance, which provides coverage for medical expenses, rehabilitation, funeral expenses, lost wages and in-home assistance to the driver and his or her passengers, regardless of who is held at fault in an accident.
Many policies offer or include uninsured or underinsured motorist protection, which provides coverage for the insured and his or her passengers if they are injured in a collision caused by an uninsured or underinsured motorist. If your vehicle is primarily used for business, make sure your company’s name is on the policy instead of your personal name to avoid complications later should you need to file a claim.
- Professional Liability insurance – or Errors and Omissions insurance – is coverage for wrongful practices by professional service providers (e.g. healthcare providers, lawyers and consultants). This type of insurance covers faulty service (errors) or failure to provide a service altogether (omission). Malpractice insurance is a specific type of professional liability policy that protects physicians and other licensed professionals from liability associated with bodily injury, medical expenses and property damage, as well as the cost of defending lawsuits related to such claims.
WHAT FACTORS AFFECT MY FLORIDA COMMERCIAL GENERAL LIABILITY INSURANCE QUOTE?
There are several factors an insurance company takes into consideration when rating a Florida commercial general liability insurance policy:
- Liability insurance premiums are typically based on a business’ sales and payroll estimates provided prior to policy inception. If the actual amounts turn out to be higher after the policy has been issued, you may need to pay an incremental premium. Conversely, if the amounts are less than estimated, you could get a refund.
- Other factors that influence your liability premiums include your type of business and the risks generally associated with it. For example, a toy manufacturer may pay $3 per $1,000 of sales. Thus, on $10 million of sales, the premium would be $30,000. A company that manufactures a less risky product or engages in a less risky business, such as a florist, may pay $1.50 per $1,000 of sales, or $15,000.
- Insurance companies evaluate a business’s risk for liability coverage based on numerous factors: the number of claims filed within an industry or probability of a claim for a similar type of company; the financial stability and longevity of a business; state laws; business products and/or operation; and a business’ approach to handling and preventing potential risks.
HOW CAN I SAVE MONEY ON MY FLORIDA COMMERCIAL GENERAL LIABILITY INSURANCE?
If you have solid, documented practices and safety procedures in place, you may be considered a lower risk by a Florida commercial general liability insurance company for liability insurance and therefore be charged lower premiums.
Source: The Florida Department of Financial Services Library