General liability insurance is often the first type of coverage purchased by new business owners, but it’s not typically required by law.

However, some agencies might require coverage before issuing a professional license or permit. This is common in construction.

Clients might also ask for proof of insurance before they will work with you.

This question comes up a lot. That’s why we wrote a detailed overview of general liability vs. professional liability.

Here’s a quick overview:

Professional liability insurance and general liability insurance offer similar benefits but there is one major difference — professional liability insurance can help cover professional mistakes and accusations of neglect. It's often related to advice you provide to a client or customer, not accidents in the workplace. General liability insurance coverage can provide financial protection for accidents that are more physical, such as property damage and injuries involving people who are not your employees.

General liability aggregate is a common insurance industry term you'll run into when exploring options for this coverage.

It's the maximum amount of money an insurance company will pay out during your policy period, which is usually one year.

If your business has expensive claims, you might hit your aggregate limit. In that case, you would be responsible for paying out of pocket to cover the remaining expenses.

Note that the aggregate limit is different from the “per occurrence” limit, which is the maximum amount your policy pays out per claim within the term of your policy.

For example, if you have a general aggregate liability limit of $300,000 and you’ve already made three claims in your policy term (usually a year) for $100,000 each, you’ve reached your aggregate limit and your insurance company won’t cover any additional claims.

It’s important to know your aggregate limit when you purchase general liability insurance. If you exceed your limit during your policy term, you will be responsible for paying for any expenses out of pocket that exceed the limit.

General liability insurance can cover expenses related to property damage, but only to property that does not
belong to you.

Commercial property insurance can help protect the physical items you need to operate your business:

· Inventory

. Business equipment

. Furniture and furnishings

· Physical structures.

A business owner's policy (BOP insurance) combines general liability insurance and commercial property insurance
into one package that is usually less expensive than buying the coverage separately.

General liability insurance does not cover automobile liability or any expenses related to business or personal driving.

Commercial auto insurance can help cover expenses If you drive for business reasons:

. Injuries if you are responsible for an accident

· Property damage to other people's property

. Repairs for your vehicle
. Towing and rentals if your vehicle is damaged

General liability insurance doesn't cover the theft of your own possessions but it might cover the theft of customer property. If you're repairing a garage door for a homeowner and someone steals her bike while you're out back, general liability could help pay for a replacement. But if any of your personal or business items are stolen, you won't be covered without additional insurance.

You can bundle tools & equipment insurance with your Califast Insurance general liability coverage if you are a contractor or own a cleaning business.