General Liability Insurance Limits Explained Simply

Understanding general liability insurance limits is essential for Texas business owners, contractors and others facing unexpected risks. JES Tax and Insurance can explain what these limits mean and why they matter for your business.

What Are General Liability Insurance Limits?

General liability insurance may help cover costs if a business is held responsible for third-party property damage, bodily injury or certain legal claims. The limits in a general liability insurance policy are the maximum amounts the insurer may pay for covered claims. General liability insurance policies usually include two main types of limits:

• Per occurrence limit: The maximum the policy may pay for a single claim or incident.
• Aggregate limit: The total the policy may pay for all claims during the policy period, usually one year.

Why Do Insurance Limits Matter?

Choosing the right insurance limits is crucial because they determine how much coverage applies if something goes wrong. If a claim exceeds your policy limits, the business may need to pay the difference out of pocket. Higher limits can help the business handle larger claims and reduce out-of-pocket costs.

How We Help You Choose the Right Coverage

Our team considers factors like your industry, business size and potential exposures to help you select appropriate general liability insurance limits. Contact JES Tax and Insurance today to learn more and get a no-obligation quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.