Question 1

Is general liability legally required in Florida?

Accepted Answer

No state law mandates general liability for most businesses, but in practice it's required by anyone you sign a contract with. Landlords require it before lease execution, lenders require it before funding, and most B2B clients require proof of $1M+ GL before issuing a purchase order. Florida construction trades often need GL plus surety bonding to qualify for public projects.

Question 2

What does general liability NOT cover?

Accepted Answer

GL specifically excludes professional errors (needs E&O), employee injuries on the job (needs workers' comp), auto accidents involving your vehicles (needs commercial auto), pollution events (needs environmental coverage), and property you own or rent (needs commercial property). Cyber breaches, employment practices claims, and product recalls also need their own policies. GL covers third-party bodily injury and property damage from your premises and operations — that's its core lane.

Question 3

What's the difference between occurrence and claims-made GL?

Accepted Answer

Occurrence policies cover events that happen during the policy period regardless of when the claim is filed — even years later. Claims-made policies only cover claims filed during the policy period, even if the event happened earlier, and require continuous coverage or expensive 'tail' protection if you switch carriers. Almost all general liability is occurrence-based; claims-made is more common in professional liability and D&O.

Question 4

Does GL cover advertising and personal injury claims?

Accepted Answer

Yes — standard GL includes Coverage B (Personal and Advertising Injury) which protects against libel, slander, copyright infringement in advertisements, false arrest, malicious prosecution, and wrongful eviction. This matters more than ever as small businesses face social media defamation claims and DMCA disputes. Coverage B is separate from Coverage A (bodily injury and property damage) and has its own per-claim limit.

Question 5

How are general liability premiums calculated?

Accepted Answer

Premiums are driven by your industry class code (a roofing contractor pays vastly more than an accountant), gross receipts or payroll, prior claims history, location risk factors, and selected limits. Florida loads premium for hurricane exposure, litigation environment, and slip-and-fall-dense zip codes. A typical Florida small business pays $500–$2,500/year for $1M/$2M GL; high-risk trades like construction or restaurants can pay multiples of that.

Question 6

Can I get general liability for a home-based business?

Accepted Answer

Yes, but standard homeowners insurance specifically excludes business activity — even a single business-related visitor injury at your home is uncovered. Home-based businesses need either a Business Owner's Policy (BOP, which bundles GL with property), a standalone GL policy, or an in-home business endorsement on the homeowners policy. The right structure depends on whether clients visit, you store inventory, or you own business equipment.

Question 7

What's a per-occurrence vs. aggregate limit?

Accepted Answer

The per-occurrence limit caps the maximum payout for a single claim or event ($1M is standard). The aggregate limit caps the total payouts across all claims during the policy period (usually 2× the per-occurrence). If you have $1M/$2M and one bad year produces three $400K settlements, GL pays all three. A fourth $400K claim that year would exceed the aggregate and you'd cover the excess yourself — which is why an umbrella is usually attached.

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