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Liability Insurance Is   

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Insurance, by definition, is a contract where the insurer, for  consideration (premium) agrees to indemnify another against a contingent  or unknown risk of loss. It is used as a method to spread losses among  many people who are insured with the same company. The insurer, by its  policy, promises, in exchange for a premium, to pay to defend and  indemnify the insured, in the event that a certain type of loss occurs  within a specified period of time called the \\u201cpolicy period.\\u201d By  spreading the risk of loss among many, each individual only pays a  minuscule portion of the risk of loss insured against.  Liability insurance is limited to insurance against the risk of losses  that can be incurred by a person for damages done to the person or  property of another by an accidental or fortuitous cause.  In exchange for the promise to pay the premium charged, the insurance  company agrees to provide the insured protection from various risks  faced by an owner, developer, or builder of real property. The risks of  loss taken by the insurer are listed on the policy. 

For each promise  made by the insurer it charges a premium.  Purchasing CGL Insurance  When purchasing insurance as a named insured, it is imperative to  purchase only the insurance coverages needed. Seek the advice and  assistance of the insurance brokers and agents with whom insurance is  sought, at least three months before the inception date of the policy  needed. Regardless of whether the policy sought is a new policy or a  renewal, the agents and brokers will need sufficient time to shop the  available insurance market. The person seeking insurance should not rely  on the broker to simply renew the previous policy for the same price  with the same insurer. Coverages available and prices vary considerably  every year. Insurers will enter and leave the market for the  construction industry every year. The prudent insured will shop wisely  and diligently every year.  The prudent person seeking insurance will provide the broker with a list  of coverages needed, the status of the insurer with whom the broker is  to shop (e.g., a Best\\u2019s Rated A or better and admitted to do business in your  state or an approved surplus line insurer). The prudent person will have  the agent or broker avoid, if possible, unapproved and not admitted  insurers and recognize that the surplus lines market is the market of  last resort.     \\xa9 2021 \\u2013 Barry Zalma Barry Zalma, Esq., CFE, now limits his practice to  service as an insurance consultant specializing in insurance coverage,  insurance claims handling, insurance bad faith and insurance fraud  almost equally for insurers and policyholders.