General Liability has three types of primary coverage that make up a CGL policy: premises liability, products liability and completed operations coverage. Some policies are also available that will offer fire legal coverage to cover damage to a rented premises. Premises liability covers liability for an accidental injury or property damage that results from a condition on your premises or your operations in progress, whether on or away from your premises.
A products liability hazard exists for any business that premises manufactures, sells, handles, or distributes goods or products. Completed operations cover a potential liability for bodily injury and property damage that arises out of your completed work.
Commercial Auto liability coverage can protect your business from liabilities that arise out of the use of automobiles. Many commercial auto policies can extend coverage to hired auto and non owned auto when requested.
Auto liability coverage on commercial auto policies are generally purchased with a combined single limit. The single limit will protect the business from claims regarding bodily injury and property damage that are a result legal liability relating to the vehicles covered.
Standard limits of coverage will vary between companies. Many companies offer combined limits of $300,000, $500,000, $750,000 and $1,000,000.
Uninsured motorist coverage is the coverage that you purchase on your auto insurance policy that covers injury that is caused to you and your passengers if you are involved in a non chargeable accident with a motorist that does not have insurance. Many companies offer underinsured motorist protection in case you are hit by a driver that does not carry enough coverage to over your bodily injury. Another optional coverage is uninsured motorist property damage and uninsured motorist collision deductible waiver. If you have this on your policy and carry liability insurance you would be covered up to $3,500 for your auto, depending on the value of your car. If you have collision deductible waiver coverage on your policy and are hit by an uninsured motorist the insurance company will waive your deductible.
Physical damage protetion is often times offered as seperate coverage for comprehensive and collision. Comprehensive coverage protects the vehicle value in the event of a non collision related loss. Examples of this would be losses from fire, theft or vandalism.
Collision coverage protects the insured vehicle to the value listed on the policy for accidents regardless of fault. When a consumer chooses to carry collision coverage and are involved in an at fault accident the insurance company will pay up to the limit posted on the policy, less the deductible, to repair or replace the vehicle itself.
On Hook/In Tow is the coverage that will protect the vehicles that are in tow. This coverage has been specifically made available for tow truck businesses. It can be purchased at many limits ranging from 25,000 to 1,000,000 per vehicle. Your policy will generally schedule this coverage to each tow truck or trailer and assign each vehicle a requested amount of coverage and deductible.
Many insurance companies will let the customer select the desired limit of coverage and will also have the consumer choose between available deductibles. The level of coverage and deductible combinations will effect the premium associated with the coverage.
Garage keepers coverage is the coverage for vehicles that are in the care, custody, or control of your tow business. Generally there will be exclusions on this coverage to exclude vehicles that are in tow or on hook. Garage keepers is written on two different forms of coverage; direct primary, direct excess or legal liability.
Most companies offer coverage on a legal liability form. On a garage keepers legal liability covers a vehicle in your care, custody, or control for a loss that can be proven to have some liability or negligence from the insured.