Are General Liability Insurance Policies Standardized?
General liability insurance policies are not fully standardized, though there are common features and formats. In the United States, many insurers utilize the Insurance Services Office (ISO) forms, such as the Commercial General Liability (CGL) policy, which provides a template that outlines the basic coverage types. These include bodily injury, property damage, personal and advertising injury, and medical payments.
However, individual insurance companies have the discretion to customize their policies, including exclusions, limits, and coverage terms. This means that while there are prevalent frameworks and conditions that many providers follow, variances exist among different providers. Additionally, the specific needs of a business—such as its industry, size, and associated risks—can further influence the customization of the policy.
It is essential for business owners to thoroughly review policy offerings, compare different insurers, and consult with insurance agents to ensure they acquire a general liability insurance policy that adequately protects their unique operations and complies with state regulations. Businesses should consider evaluating coverage options, endorsements, and any potential gaps in protection when choosing a liability policy.