Use dotted terms for definitions. You can also browse the glossary.
Before you decide
- An injury allegation and an insured liability claim are different questions.
- Check insured names and activities before selecting a limit.
- Maintenance records support operations and incident investigation.
Identify the insured operation
Write the legal owner, manager and any operating entity beside the premises and activities. Ownership of a building does not automatically establish that every affiliated person or business is insured. Ask how the proposal treats employees, contractors, guest stays and work performed for others.
NAIC distinguishes general liability from professional, employment-related and other specialized exposures. Use those categories to identify questions rather than presume every lawsuit fits general liability. The actual allegation, insured status, dates, exclusions and applicable law affect the result.
Review the liability mechanics
| Provision | Question |
|---|---|
| Occurrence limit | What applies to one covered event? |
| Aggregate | What can be exhausted during the policy period and across which locations? |
| Defense costs | Inside or outside limits, and who selects counsel? |
| Insured contracts | Which assumed obligations are addressed? |
| Additional insured | What endorsement, activity and duration are specified? |
| Notice | Where and when must an incident or claim be reported? |
Worked scenario: a walkway report
A tenant reports a loose handrail. Record the report, arrange a qualified repair, document interim precautions and confirm completion. If an injury is later alleged, preserve the original communications and work records. Prompt maintenance matters regardless of whether a claim is made.
Notify the appropriate insurance channel according to the contract and provide facts without promising payment or deciding fault. A tenant’s renters insurance should not be presumed to release the owner from legal duties. Lease wording and local law require separate professional review.
Decide what remains outside
Create a separate list for professional services, employee injury, vehicles, pollution, cyber incidents and intentional conduct questions. Some may require different products; some may remain uninsured. Ask the partner to identify where each exposure is addressed or excluded.
An LLC and a liability policy serve different functions. Entity planning belongs with counsel; it should not be treated as a substitute for maintenance, suitable contracts or an insurance review. Keep the chosen limit and unresolved gaps in the renewal file.
Sources & scope
- NAIC: Small business insurance
General property, liability and package-policy definitions. Product eligibility and exclusions require the actual form.
Sources checked October 24, 2026. General descriptions do not replace the policy, endorsements, declarations or an insurer’s coverage determination. Examples are hypothetical unless explicitly identified otherwise.
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