Duncan & Stoker
Commercial Insurance Solutions Inc.
Top 10 Questions
Frequently asked about liability insurance
and it's A La Carte options.
Below, you’ll find answers to the most common questions about liability coverage's, along with concise, practical answers tailored to your needs.
For an in-depth breakdown of the Liability coverages available to protect your business and your assets - Remember Insurance is A La Carte you can pick an choose the coverages You need.
What does liability coverage actually protect?
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​​​​Liability coverage protects your business from claims or bodily injury property damage, or personal/advertising injury caused by your operations, products, or premises. It covers medical bills, repairs costs, legal fees, and settlements if you're sued.
What’s the difference between general liability and professional liability?
General liability covers physical risks like injuries or property damage, while professional liability (errors & omissions) covers claims from mistakes or negligence in services.
Is liability insurance required by law?
General liability isn’t always legally required, but some states mandate it for specific industries (e.g., contractors). Clients, leases, or lenders often require it contractually.
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How much does liability insurance cost?
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Costs vary by industry, size, location, and coverage limits—typically $400-$1,500 annually for small businesses with $1M coverage. High-risk industries like construction may pay more.
Why do I need cyber liability insurance?
Cyber liability covers losses from data breaches, hacks, or ransomware, including notification costs, legal fees, and downtime losses. It’s vital if you store customer data or use digital systems.
Do I need general liability insurance if I’m
a small business?
​Yes, even small businesses face risks from accidents or lawsuits. General liability is often required by clients, landlords, or contracts, and it's a low-cost way to avoid catastrophic losses
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How much liability coverage do I need?
It depends on your business size, industry, and risk exposure. Common limits start at $1M per occurrence/$2M aggregate, but high-risk businesses may need more. Assess contracts and assets with an agent.
What doesn’t general liability insurance cover?
It excludes employee injuries (covered by workers’ comp), professional errors (professional liability), auto accidents (commercial auto), and intentional acts or property damage to your own assets.
What’s an umbrella or excess liability policy,
and do I need one?
An umbrella policy adds extra coverage beyond your primary liability limits, kicking in for large claims. It’s crucial for businesses with high exposure to lawsuits.
What is EPLI, and is it necessary for my business?
Employment Practices Liability Insurance (EPLI) covers claims from employees alleging discrimination, harassment, or wrongful termination. It’s essential if you have employees, as workplace disputes are common.