General Liability Basics

General Liability Basics

Law firms are growing at a tremendous rate, and we have been able to work with many of them in implementing their first insurance policy. In setting up a firm’s first insurance program, general liability insurance is the most basic and primary coverage.  Just because it’s the essential coverage doesn’t mean it is understood by many outside the insurance industry.  We wanted to create a blog post outlining the basics of a general liability insurance policy and why it’s so essential for a law firm to carry one.

What does general liability insurance cover?

Under a liability insurance policy, your insurance company will be any legal claims and defense costs for covered claims and lawsuits. Covered liability claims include bodily injury, property damage, personal injury, and advertising injury.

The amount of coverage a firm should purchase depends upon various factors. Most states require minimum liability limits of $1 million per occurrence and $2 million aggregate limits. Depending upon the size of your firm and other risk factors, it may be necessary to purchase additional limits.

General liability insurance is essential for law firms because even minor incidents can quickly turn into lawsuits in today’s litigious society. This is why insurance companies require firms to report any accident that could potentially result in a claim as soon as possible. This includes documenting the situation, forwarding any summons and legal notices, and cooperating fully in any investigations.

If you have any additional questions about how a general liability insurance policy can help your firm, please don’t hesitate to give our office a call at (702) 507-6999.