Vendor setup · General liability
General liability insurance
What happens if your work hurts someone or damages their property.
What it covers
- General liability (commercial general liability, CGL) covers four categories of events a business can be held responsible for: bodily injury, damage to others' property, personal injury including slander and libel, and false or misleading advertising. NAIC, as of
- Business liability coverage protects the business from claims alleging bodily injury, property damage, libel and slander. NAIC, as of
- NAIC glossary: commercial general liability is broad commercial liability coverage with a premises/operations sub-line and a products/completed-operations sub-line. NAIC, as of
- General liability does not cover claims from operating a vehicle; a business that owns vehicles needs separate commercial vehicle coverage. NAIC, as of
Why managers and boards ask for it · commonly requested
- CAI advises hiring a contractor or inspector who carries general liability without a homeowners association exclusion, plus errors and omissions where they act as a consultant. Community Associations Institute (CAI Foundation), as of
- CAI guidance for association maintenance and remodeling projects says a contractor's insurance should likely include construction, property and liability, workers' compensation and professional liability coverage. Community Associations Institute (CAI Foundation), as of
What the limits mean
There’s no single standard amount. Each community sets its own, and the certificate shows yours.
- A policy’s limits are the most it will pay. NAIC, as of
- An occurrence is an accident, including exposure to conditions, that causes bodily injury or property damage neither expected nor intended from the standpoint of the insured, during the policy period. NAIC, as of
- An aggregate limit is the most a policy will pay for one loss or for several losses combined during the policy period, or on a single project. NAIC, as of
Where VendoRFP asks for it
Each community sets its own insurance requirement when it writes an RFP, and your documents are checked against it before a proposal goes in.
Required
It is one of the documents that approve a company on the platform.
VendoRFP’s default RFP request includes this coverage for pool, landscaping, porter, amenity staffing, pest control, HVAC, electrical work, and painting. It’s a starting point the community changes, not an industry norm.
Sources
- Small Business Insurance National Association of Insurance Commissioners (NAIC). As of .
- Business Interruption Insurance/Businessowner's Policies (BOP) National Association of Insurance Commissioners (NAIC). As of .
- Glossary of Insurance Terms National Association of Insurance Commissioners (NAIC). As of .
- Community Association Maintenance (best practices) Community Associations Institute (CAI Foundation). As of .
Official pages change. Each line shows the day we last read it.