What is the minimum coverage limit for Commercial General Liability Insurance?

The minimum coverage limit for Commercial General Liability Insurance is set at not less than $1,000,000 each occurrence. This coverage is essential for protecting businesses against claims of bodily injury, property damage, and personal injury. A limit of $1,000,000 reflects a standard requirement in many contractor agreements, particularly in urban environments like San Francisco, where the risks associated with construction and various contractor activities may be higher due to regulatory standards and the potential for significant claims.

This level of coverage serves as a safeguard for contractors, ensuring they have adequate resources to address any claims that may arise during the scope of their work. Choosing a limit lower than this could leave a contractor exposed to substantial financial risk, particularly for projects involving multiple interactions with the public or more complex operations. Each occurrence coverage means that for each individual claim, up to $1 million would be provided, which is crucial for maintaining financial stability and complying with contractual obligations.

Higher limits may be advisable based on the specific nature of the work or contractual requirements, but $1,000,000 is the established baseline that ensures a level of protection appropriate for most general contracting scenarios.