What does dram shop liability mean in Georgia?

Dram shop liability means an establishment can be held legally responsible for damages caused by patrons it served while visibly intoxicated, especially when the patron is a minor. Georgia is a dram shop state; liquor liability insurance is the primary defense.

Does general liability cover damage to a client's property I'm working on?

Usually no. The standard general liability policy excludes damage to property in your care, custody, or control while you are working on it.

Is liquor liability insurance required in Georgia?

Not legally required by state statute for most establishments, but practically required: standard general liability excludes alcohol-related claims, and many landlords, partners, and lenders require it. Liquor licenses may also require proof of coverage.

How do general liability limits work for a small business?

Most small businesses carry $1M per occurrence and $2M aggregate.

What insurance does a Georgia contractor need beyond basic general liability?

Georgia construction contractors typically need general liability, commercial auto, contractors tools, builders risk, and workers compensation.

General Liability FAQs

What is the difference between per-occurrence and aggregate limits?

All FAQs

Quick answer: The per-occurrence limit caps a single claim; the aggregate caps all claims combined for the policy year. Multiple smaller claims can exhaust the aggregate even when no single claim nears the per-occurrence limit.

A general liability policy carries two different limits that answer two different questions. The per-occurrence limit caps what the policy pays for any single claim. The aggregate limit caps what it pays for all claims combined during the policy year. Most Georgia small businesses carry a $1 million per-occurrence and $2 million aggregate structure, the standard baseline that most landlords, clients, and vendors expect to see on a certificate of insurance.

What do per-occurrence and aggregate limits mean?

The per-occurrence limit is the maximum the policy pays for any single claim. The aggregate limit is the maximum it pays for all claims combined during the policy year. If a business faces multiple claims in one year, the aggregate is what caps total exposure, not the per-occurrence figure.

How does an aggregate limit erode over a policy year?

Every paid claim during the policy year reduces the remaining aggregate, even when no single claim comes close to the per-occurrence limit. For example, a Georgia contractor carrying $1 million per-occurrence and $2 million aggregate pays out a $600,000 claim in April and a $500,000 claim in August. Both fall well under the $1 million per-occurrence limit individually, but together they have used $1.1 million of the $2 million aggregate. Only $900,000 remains for the rest of the policy year, even though neither claim came close to exhausting the per-occurrence limit on its own. A third claim later that year could exhaust the aggregate entirely, leaving the business to pay any additional claims out of pocket for the remainder of the term.

What factors push the right limit higher?

Contracts: Many Georgia clients and commercial landlords require specific limits, sometimes $2 million per occurrence or more, before they will work with you.
Industry risk: Businesses with heavy customer foot traffic or physical work, such as contractors or restaurants, face larger injury claims on average.
Assets: The more a business owns, the more a lawsuit can reach, so higher limits provide proportionally more protection.

For example, a Georgia restaurant carries a $1 million per-occurrence limit. A customer slips, suffers a serious back injury, and a jury awards $1.4 million. The policy pays its $1 million limit, and the restaurant owes the remaining $400,000 personally. A higher limit, or an umbrella policy stacked on top, would have absorbed the full award. Our FAQ on what an umbrella policy is explains how that extra layer works.

Can an umbrella replace a higher primary limit?

For businesses that want extra protection without buying a larger primary policy, an umbrella adds an affordable layer above the general liability limit. An umbrella also sits on top of other policies, such as commercial auto, so a single extra layer can raise several limits at once. Our FAQ on Georgia commercial auto minimums explains how auto limits interact separately with an umbrella.

For example, a Georgia cleaning company that carries a $1 million general liability limit and a $1 million commercial auto limit might add a $1 million umbrella for a few hundred dollars per year, effectively raising both limits to $2 million. That added layer costs far less than doubling each underlying policy individually. To right-size your limits for your contracts and risk, request a free coverage review and learn more about general liability insurance.