General Liability Insurance
How General Liability limits protect your business
Coverage limits determine the maximum amount your insurer will pay for covered claims. Understanding per-occurrence and aggregate limits helps you choose the right protection level for your business.
General liability insurance uses a two-tier limit structure: per-occurrence and aggregate limits. The per-occurrence limit is the maximum paid for any single claim or incident, while the aggregate limit caps total payouts during your policy period (usually one year).
For example, with a $1M/$2M policy, your insurer pays up to $1 million for each covered incident and up to $2 million total across all claims in the policy year. Once you hit either limit, you're responsible for additional costs.
Most standard GL policies include separate sub-limits for specific coverages like products-completed operations, personal and advertising injury, and damage to rented premises. Understanding these sub-limits is crucial for businesses with specialized risks.
Types of Coverage Limits
Per-Occurrence Limit
$1,000,000
Maximum paid for any single incident, accident, or claim. This applies each time a covered event happens, regardless of how many claims arise from it.
General Aggregate Limit
$2,000,000
Total maximum your policy will pay during the policy period for all claims combined, excluding products-completed operations.
Products-Completed Operations Aggregate
$2,000,000
Separate aggregate limit specifically for claims arising from your products or completed work away from your premises.
Damage to Rented Premises
$100,000 - $300,000
Covers physical damage to premises you rent. This is a sub-limit within your per-occurrence limit.
Recommended Limits by Business Size
| Business Type | Recommended Limit |
|---|---|
| Small business (under $500K revenue) | $1M/$2M |
| Mid-size business ($500K-$5M revenue) | $1M/$2M with umbrella |
| Larger business ($5M+ revenue) | $2M/$4M+ or umbrella |
| High-risk industries (construction, manufacturing) | $2M/$4M minimum |
Need help with your general liability insurance?
Our licensed agents can help you understand your coverage options and find the right policy for your business.