General liability insurance in Dallas
General liability is often the first policy a Dallas business gets asked about. A landlord, a client or a general contractor may want proof of it before you start work.
It is about claims that your business hurt someone or damaged their property.
What it is meant to handle
The Texas Department of Insurance describes commercial general liability as protection against claims for bodily injury, property damage, and personal and advertising injury. That last group includes slander and false advertising.
Coverage can apply to harm at your place of business or from your operations. It can also apply to harm caused later by your finished work or the products you sell.
Source: Texas Department of Insurance: Commercial general liability insurance
Claims it is often built for
- A customer trips and gets hurt at your shop or office.
- Your crew damages a client’s property while working.
- Work you finished or a product you sold causes harm later.
- Someone says your ads or words damaged their reputation.
Source: Texas Department of Insurance: Commercial general liability insurance
Common exclusions and other policies
- Damage to your own work or your own product. TDI notes an exception when a subcontractor did the damaged work.
- Costs you owe only because a contract says so, with some exceptions.
- Recalling faulty products. This can sometimes be added for an extra charge.
- Injuries to your own workers. That is a workers’ compensation question.
- Most pollution claims.
- Mistakes in professional services. That is a professional liability question.
Source: Texas Department of Insurance: Commercial general liability insurance
What to gather before you ask
- A plain description of what your business does each day.
- Where the work happens: your place, client sites or both.
- Your estimated yearly sales or payroll.
- Your claims history, also called loss runs, if you have a current policy.
- Any contract or lease that lists insurance requirements.
Questions about general liability
Why could my premium change after the policy ends?
Many general liability policies have a premium audit. The first premium is based on estimated payroll or sales. The insurer can check the real numbers later and charge more or return some premium.
Source: Texas Department of Insurance: Commercial general liability insurance
Is general liability the same as professional liability?
No. TDI says the two cover different kinds of damage. Professional liability is about claims from the professional services you provide, such as a mistake that costs a client money.
Source: Texas Department of Insurance: FAQ on professional liability insurance
Policy terms, exclusions and eligibility control what is covered. Talk through your needs with a licensed agent before you rely on any policy.