What limits should I carry on general liability?

Most small businesses should carry general liability limits of at least $1 million per occurrence and $2 million aggregate. That combination, often written as 1/2 million, is the standard most clients, landlords, and contracts expect, and it is the level that actually protects a small business from a serious claim.

It helps to know what those two numbers mean. The per occurrence limit is the most the policy pays for any single claim or incident. The aggregate limit is the most it pays in total across all claims during your policy year. So a 1/2 million policy pays up to $1 million for one incident and up to $2 million for everything combined in that year.

Why those amounts. A single liability claim can easily exceed lower limits. If a customer suffers a serious injury at your business, medical bills, lost wages, and legal costs can climb past $500,000 quickly. A $1 million per occurrence limit gives you room to absorb that. The $2 million aggregate protects you if you have more than one claim in a year.

Here is a real example. A customer slips on a wet floor in your Gwinnett County store and breaks a hip. Surgery, rehabilitation, lost income, and a legal settlement total $420,000. A general liability policy with a $1 million per occurrence limit covers the claim and your legal defense, and your business keeps running. A bare minimum policy might have left you exposed for part of that.

Some situations call for higher limits. Commercial leases and client contracts often demand specific minimums, and larger or higher risk operations may need more. If your work carries real liability exposure, the right move is often to keep the 1/2 million general liability base and add an umbrella policy on top for extra protection at a low cost.

The right limit depends on your industry, your contracts, and your exposure. A free coverage review looks at what your contracts require and what your real risk looks like, so your limits land neither too low nor wastefully high.