Purchasing Insurance for the Georgia Business Owner is not as complicated as it may seem. Coverage is traditionally provided in the following format: 300/600, 500/1000, 1,000/2,000, and 2,000/4,000.
Coverage outlined like this is traditionally intrepreted as follows:
300/600= $300,000 of coverage for a single claim and the MAX amount the policy will pay is $600,000 during the policy period.
or 500/1,000= $500,000 of coverage for a single claim and the MAX amount the policy will pay is $1,000,000 during the policy period.
So, if for some reason you had three separate claims totalling $250,000 each with coverage of 300/600, the first two claims would potentially be paid in full while the last claim for $250,000 would only have $100,000 paid by the insurance policy. (Claim 1 + Claim 2 + Claim 3 can NOT exceed the maximum amount of $600,000 during any policy period.)
There are insurnace companies in Georgia that outline coverage in a single amount like- General Liability Coverage of- $1,000,000.00 The question must be asked, is that per incidient or per policy period.
When purchasing coverage, make sure to know what you are purchasing and make sure it meets the requirements of those requiring proof of coverage.
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