Guides
Part of General liability coverage: what counts as third party, and what does not
Which general liability insurers to shortlist, and why
General liability insurers worth shortlisting differ by appetite, policy form, and claims handling, so match the carrier to your trade before comparing price.
A shortlist is not a ranking. It is a set of carriers whose appetite, form and claims operation fit the trade you actually run.
You do not buy an insurer. You buy one contract, on one set of terms, offered to one description of your business, at one moment in a market that moves. Change any of those and the same company gives you a different deal.
What to take away
- Appetite decides everything else. A carrier that wants your class prices you as a normal risk, and one that does not writes you on terms built for something else.
- Admitted status changes what happens if the insurer fails. State guaranty funds generally back admitted carriers, not surplus lines placements.
- The description of your operations does more work than any shopping decision. Underwriting is the act of deciding what to accept, and on what terms, from what the applicant said.
- Compare two live offers on structure and claims process, not two brand names.
- Your state insurance department publishes licensing and complaint records that beat any editorial list.
Carriers worth knowing
These are real markets that write small and mid-sized commercial general liability. None is recommended for your business, and none of this is a quote.
Carriers by trade and channel
Hartford
- Type
- National admitted
- Suits
- Contractors, retail
- Sold via
- Agents, direct
Travelers
- Type
- National admitted
- Suits
- Trades, hospitality
- Sold via
- Independent agents
Chubb
- Type
- High-limit admitted
- Suits
- Larger firms
- Sold via
- Brokers
| Carrier | What it is | Who it tends to suit | How it is sold |
|---|---|---|---|
| The Hartford | National admitted carrier, long-standing small commercial operation | Contractors, retail, professional services buying a package | Independent agents, direct |
| Travelers | National admitted carrier with a large agency plant | Trades, real estate, hospitality, manufacturing | Independent agents |
| Liberty Mutual | National admitted carrier, broad middle-market appetite | Construction, services, light manufacturing | Independent agents, direct |
| Nationwide | Admitted carrier strong in small commercial and farm risks | Main Street retail, contractors, agribusiness | Independent agents, direct |
| Chubb | High-limit admitted carrier writing complex or high-value risks | Larger firms, professional services, property-heavy schedules | Brokers |
| CNA | Admitted carrier known for trade and professional associations | Contractors, healthcare, technology, associations | Independent agents |
| Hiscox | Specialty admitted and surplus writer for small professional risks | Consultants, IT, media, small service firms | Direct, brokers |
| Markel | Specialty admitted and surplus writer | Professional services, events, niche trades | Brokers |
| Zurich | Large commercial admitted carrier | Mid-market and larger firms with complex exposures | Brokers |
| Berkshire Hathaway GUARD | Admitted carrier for small commercial packages | Contractors, retail, restaurants | Independent agents |
| Philadelphia Insurance | Admitted and surplus writer for niche classes | Nonprofits, human services, sports and fitness | Brokers |
| Employers | Admitted carrier focused on small business workers' compensation and liability | Small contractors, restaurants, retail | Independent agents |
Your broker's appointments decide which of these you can actually see. Ask which markets were approached and which declined, because a decline tells you where your class sits in the market.
What separates two of these carriers
The form. Some write on ISO industry forms with familiar endorsements. Others write their own wording. A proprietary form is not automatically worse, but it is not comparable at a glance, and the differences hide in definitions rather than headlines.
Four things that separate carriers
- FormISO or proprietary wording
- Who holds the pencarrier or agency
- Claims handlingreporting, ownership, counsel
- Continuityyears in your class
Who holds the pen. Your policy may be underwritten by the company on the front, by an agency with delegated authority acting for it, or by a program built for one industry. That changes who you call when something unusual comes up.
Claims handling. How a claim is reported, whether one person owns it, how fast a coverage position is communicated, and whether defense counsel comes from a panel or from you. Ask before you buy. Nobody volunteers it.
Continuity. A carrier that stays in your class for a decade beats one that is cheapest this year and gone the next. Repricing a program every twelve months costs money and attention that never shows on a quote.
Admitted and surplus lines are not the same purchase
An admitted insurer is licensed in your state, and its forms and rates go through your state's process. A surplus lines insurer is not licensed there and is used when the admitted market will not write the risk. Surplus lines cover a great deal of legitimate business, particularly unusual trades and difficult loss histories.
Admitted vs surplus lines
Admitted
- Licensing
- Licensed in your state
- Forms
- State-reviewed
- Guaranty fund
- Generally covers
- Used when
- Standard risk
Surplus lines
- Licensing
- Not licensed there
- Forms
- Not standardized
- Guaranty fund
- Generally does not
- Used when
- Admitted market declines
Two consequences matter before you sign. Surplus lines wordings are not standardized, so exclusions differ between offers that look alike. State guaranty fund protection pays certain claims if an admitted insurer becomes insolvent, and generally does not cover surplus lines placements.
Your state insurance department can tell you how that works where you are, and the federal directory of state consumer protection offices finds the right office. Your broker should say plainly which kind of market a quote came from.
A worked comparison
Two quotes arrive for a nine-person remodeling contractor, both at the same premium. One is a surplus lines form with a residential exclusion and a defense panel chosen by the carrier. The other is an admitted ISO form with a completed operations endorsement and counsel chosen by the insured.
Same premium, different exposure
Surplus quote
- Form
- Surplus lines
- Residential work
- Excluded
- Defense counsel
- Carrier panel
- Condominium claim
- Defended alone
Admitted quote
- Form
- Admitted ISO
- Residential work
- Not excluded
- Defense counsel
- Insured chooses
- Condominium claim
- Covered
The price is identical. The exposure is not. The first leaves you defending a condominium renovation alone, and the second does not.
That is the comparison worth making, and it is why the description of your operations, covered in the requirements guide, does more work than any shopping decision.
Questions to put to the broker
Send these in writing, once per offer, and compare the answers rather than the brands.
Seven questions for the broker
- Is the carrier admitted in my state?
- What classification was used?
- Standard form or carrier wording?
- Who underwrites it?
- How are claims reported and counsel chosen?
- Are required endorsements available?
- How long in my class?
Compare structure before price. What separates two quotes is set out in the policy reading and renewal guide, and the traps that follow a bad choice are collected in the common mistakes list.
Where the public record helps
Your state insurance department licenses insurers and handles complaints about their conduct. Many states publish complaint information you can review, a record of how a company treated policyholders in your state.
Where to check a carrier
- State insurance department licenses insurers
- State handles conduct complaints
- Many states publish complaint records
- Review record for your state
- Check trade specialization
That record is closer to what you want than any editorial ranking. Trade specialization is worth chasing too, because insurers that concentrate on a sector understand its exposures, and that shows up in wording as much as price.
The reasoning behind sector fit is in the guide to insurance by industry, and the boundaries of the line itself are in the overview of general liability.
Common questions
Is the biggest insurer the safest choice?
Size relates to capacity to pay, which is one input among several. Independent rating agencies assess financial strength, and your broker can show you the current assessment for any carrier proposed. Ask for it rather than assuming from familiarity.
My broker only showed me one quote. Is that a problem?
Not necessarily, and it is worth asking why. Sometimes one market is the only one with appetite for your class, and sometimes it reflects where the broker holds an appointment. Ask which markets were approached and which declined.
Does a cheaper carrier fight claims harder?
There is no reliable relationship you can assume in either direction, and anyone claiming otherwise is guessing. What you can check is the wording, the defense arrangements, and your state department's complaint record.
Should I switch carriers to save money?
Look at what the switch does to your coverage before you look at what it does to your bill. On claims-made lines the switch can affect years of past work, and even on occurrence lines a different form means different exclusions.
