General Liability
Covers third-party bodily injury and property damage claims under commercial general liability policies, including premises liability, products liability, and completed operations.
Playbook Overview
- Category
- Property & Casualty
- Common Letter Types
- acknowledgmentreservation of rightscoverage investigationpartial denialfull denialpaymentsubrogationstatusclosing
- High Complexity Jurisdictions
- californianew yorktexas
General liability claims involve third-party bodily injury and property damage allegations against the insured. Correspondence in GL claims must navigate the distinction between the duty to defend and the duty to indemnify, and often involves coordination with defense counsel.
Jurisdiction Comparison Matrix
Acknowledgment, accept/deny, and payment deadlines alongside the ack. to claimant rule for each state. Click a column header to sort; click a state to see full requirements.
50 of 50 states
| Alabama(AL) | 15 calendar days | 30 calendar days | 30 calendar days | Yes | High |
| Alaska(AK) | 10 business days | 15 business days | 30 business days | Yes | High |
| Arizona(AZ) | 10 business days | 15 business days | 30 calendar days | Yes | High |
| Arkansas(AR) | 15 business days | 15 business days | 10 business days | Yes | High |
| California(CA) | 15 calendar days | 40 calendar days | 30 calendar days | Yes | High |
| Colorado(CO) | Reasonable time (no specific number) | 60 calendar days | 60 calendar days | Yes | Medium |
| Connecticut(CT) | Reasonable time (no specific number) | Reasonable time (no specific number) | 30 calendar days | No specific statutory or regulatory requirement found | Medium |
| Delaware(DE) | 15 business days | 30 calendar days | 30 calendar days | No specific statutory or regulatory requirement found | High |
| Florida(FL) | 7 calendar days | 60 calendar days | 60 calendar days | Yes | High |
| Georgia(GA) | 15 calendar days | 15 calendar days after receiving proof of loss, or 30 calendar days from notice of claim if no proof of loss is required; 60 calendar days absolute maximum (Ga. Comp. R. & Regs. 120-2-52-.03(3) & (5)) | 10 calendar days | Yes | High |
| Hawaii(HI) | 15 business days | Reasonable time (no specific number) | 30 calendar days | Yes | Medium |
| Idaho(ID) | Reasonable time (no specific number) | Reasonable time (no specific number) | 30 calendar days | No specific statutory or regulatory requirement found | Medium |
| Illinois(IL) | 15 business days | Reasonable time (no specific number) | 30 calendar days | Yes | Medium |
| Indiana(IN) | Promptly (no specific number) | Reasonable time (no specific number) | Promptly (no specific number) | Yes | Medium |
| Iowa(IA) | 15 calendar days | C30 (extendable with notice within the 30-day period) | 30 calendar days | Yes | High |
| Kansas(KS) | 10 business days | 15 business days | Promptly (no specific number) | Yes | High |
| Kentucky(KY) | 15 | Reasonable time (no specific number) | 30 calendar days | Yes | High |
| Louisiana(LA) | 14 calendar days | REASONABLE (written offer to settle within C30 after receipt of satisfactory proofs of loss) | C30 (C60 for catastrophic residential property claims) | No specific statutory or regulatory requirement found | High |
| Maine(ME) | Reasonable time (no specific number) | Reasonable time (no specific number) | C30 (for non-fire property claims after proof of loss is received); C60 (for fire policies after proof of loss is received and ascertainment of the loss is made) | Yes | Medium |
| Maryland(MD) | 15 business days | 15 business days | Promptly (no specific number) | Yes | High |
| Massachusetts(MA) | REASONABLE (Reasonably promptly per Mass. Gen. Laws ch. 176D, § 3(9)(b)) | REASONABLE (Within a reasonable time after proof of loss per Mass. Gen. Laws ch. 176D, § 3(9)(e); 15 days to notify intention to rebuild/repair per Mass. Gen. Laws ch. 175, § 99) | C30 (Within 30 days after statement of loss or executed proof of loss per Mass. Gen. Laws ch. 175, § 99) | Yes | Medium |
| Michigan(MI) | Promptly (no specific number) | Reasonable time (no specific number) | 60 calendar days | Yes | Medium |
| Minnesota(MN) | 10 business days | B60 (after proof of loss) / B30 (after notification of claim, unless delayed and properly noticed) | B5 (from settlement agreement receipt or condition performance); C60 (after proof of loss and ascertainment under Standard Fire Policy) | Yes | High |
| Mississippi(MS) | Promptly (no specific number) | REASONABLE (case law) | REASONABLE (case law) | No specific statutory or regulatory requirement found | Medium |
| Missouri(MO) | 10 business days | 15 business days | Promptly (no specific number) | Yes | High |
| Montana(MT) | Reasonable time (no specific number) | 30 calendar days to pay or discharge any duty, extendable to 60 calendar days with reasonable request for additional information; interest accrues after the 30/60 day period (Mont. Code Ann. § 33-18-232(1)). Must affirm or deny within a reasonable time (§ 33-18-201(5)). | C30 (extendable to C60 if additional information was requested) | Yes | High |
| Nebraska(NE) | 15 calendar days | 15 calendar days | 15 calendar days | Yes | High |
| Nevada(NV) | 20 business days | 30 business days | 30 calendar days | Yes | High |
| New Hampshire(NH) | 10 business days | No strict deadline; must decide within 5 working days of receiving requested documentation or send a delay letter (N.H. Admin. Code Ins 1002.05(d)-(e)) | 5 business days | Yes | High |
| New Jersey(NJ) | 10 business days | 30 calendar days | 10 business days | Yes | High |
| New Mexico(NM) | Reasonable time (no specific number) | Reasonable time (no specific number) | Promptly (no specific number) | No specific statutory or regulatory requirement found | Medium |
| New York(NY) | 15 business days | 15 business days | 5 business days | Yes | High |
| North Carolina(NC) | 30 calendar days | Reasonable time (no specific number) | 60 calendar days | Yes | Medium |
| North Dakota(ND) | Reasonable time (no specific number) | Reasonable time (no specific number) | Promptly (no specific number) | Yes | Medium |
| Ohio(OH) | 15 calendar days | 21 calendar days | 10 calendar days | Yes | High |
| Oklahoma(OK) | 30 calendar days | 60 calendar days | No specific statutory or regulatory requirement found | Yes | Medium |
| Oregon(OR) | 30 calendar days | 30 calendar days | No specific statutory or regulatory requirement found | Yes | High |
| Pennsylvania(PA) | 10 business days | 15 business days | No specific statutory or regulatory requirement found | Yes | High |
| Rhode Island(RI) | 15 calendar days | 21 calendar days | 30 calendar days | Yes | High |
| South Carolina(SC) | Promptly (no specific number) | Promptly (no specific number) | 90 calendar days | Yes | Medium |
| South Dakota(SD) | C30 (SDCL § 58-33-67(1)); PROMPTLY (SDCL § 58-12-34(2)); C15 to provide forms (SDCL § 58-12-34(13)) | REASONABLE (SDCL § 58-12-34(7)) | PROMPTLY (SDCL § 58-12-34(4)) | Yes | Medium |
| Tennessee(TN) | 30 calendar days | 60 calendar days | 30 calendar days | Yes | Medium |
| Texas(TX) | C15 (B15 presumed reasonably prompt under 28 TAC § 21.203(2)) | B15 (extendable to C45 with notice) | 5 business days | Yes | High |
| Utah(UT) | 15 calendar days | 30 calendar days | 30 calendar days | Yes | High |
| Vermont(VT) | 10 business days | 15 business days | B10 (C60 for fire insurance) | Yes | High |
| Virginia(VA) | 15 calendar days | C15 (extendable with notice) | Promptly (no specific number) | Yes | High |
| Washington(WA) | 10 business days | 15 business days | 15 business days | Yes | High |
| West Virginia(WV) | 15 business days | 10 business days | 15 business days | Yes | High |
| Wisconsin(WI) | 10 calendar days | Reasonable time (no specific number) | 30 calendar days | Yes | High |
| Wyoming(WY) | Promptly (no specific number) | 45 calendar days | 45 calendar days | Yes | Medium |
General Liability Case Law
Recent and frequently cited general liability decisions across the 50 states. State abbreviation appears after each case name — follow through to a jurisdiction page for the full list.
- Case Law
Granados v. Wilson, 317 Kan. 34 (KS)
523 P.3d 501 (2023)
Status UpdatesGeneral LiabilityHomeownersAn insurer owes implied contractual duties of reasonable care and good faith when handling claims, which includes proper investigation, evaluation, and communication. However, as a matter of law, an insurer owes no affirmative duty to initiate settlement negotiations with a third party before a claim is made.
- Status UpdatesGeneral LiabilityInland / Ocean Marine
the Fourth Appellate District reinforced that the failure to communicate dynamically during settlement negotiations is bad faith. In this case, the claimant made a short-fuse policy limits demand. The insurer failed to respond promptly to the arbitrary deadline and failed to communicate the specific terms required (such as a signed declaration from the insured) .
- Case Law
Pinto v. Farmers Insurance Exchange (CA)
61 Cal. App. 5th 676 (2021)
Bad FaithDuty to DefendAutoCommercial AutoCyberGeneral LiabilityInland / Ocean MarineProfessional LiabilityClarified the third-party failure-to-settle standard. Rejecting a strict liability approach, the court held that failing to accept a reasonable settlement demand within limits is not bad faith per se. The plaintiff must explicitly prove that the insurer's failure to settle was unreasonable under the circumstances .
- Case Law
Harleysville Group Insurance v. Heritage Communities, Inc., 420 S.C. 321 (SC)
803 S.E.2d 288 (2017)
Status UpdatesGeneral LiabilityInsurers must provide unambiguous, highly detailed reservations of rights. Insurers possess an affirmative duty to inform the insured of the need for an allocated verdict (covered vs. non-covered damages) and the potential conflict of interest.
- Case Law
State ex rel. Universal Underwriters Ins. Co. v. Wilson, 239 W. Va. 338 (WV)
801 S.E.2d 216 (2017)
Duty to DefendGeneral LiabilityAcknowledged the potential divergence of interests between an insurer and insured, explicitly addressing the role and requirement of independent counsel when actual conflicts arise. - Current Status: Valid. - Soaring Eagle Dev. Co., LLC v. Travelers Indem. Co. of Am., 2020 W. Va. LEXIS 688 (2020) .
- Case Law
Nickerson v. Stonebridge Life Ins. Co (CA)
63 Cal. 4th 363 (2016)
Bad FaithAutoCommercial PropertyGeneral LiabilityHomeownersProfessional LiabilityFor the purpose of calculating the constitutional ratio between punitive and compensatory damages, Brandt fees awarded by a trial court post-verdict must be included in the compensatory damages denominator . Context: The insurer wrongfully limited a paralyzed veteran's hospital stay benefits.
Show 6 more cases
- Case Law
Kiryuta v. Country Preferred Ins. Co (OR)
376 P.3d 284 (2016)
Bad FaithGeneral Liability. Available at: http://www.gordon-polscer.com/news/2017/1/13/oregons-uninsured-motorist-safe-harbor-provision-undermined-by-defense-pleadings
- Case Law
Reid v. Mercury Ins. Co (CA)
220 Cal. App. 4th 262 (2013)
Bad FaithDuty to DefendStatus UpdatesAutoGeneral LiabilityProfessional Liabilityheld that an insurer does not necessarily have an affirmative duty to settle absent a demand, subsequent commentary and cases (such as the principles affirmed in Hedayati and the Restatement of Liability Insurance) emphasize that insurers must proactively communicate with the insured about the risks of litigation.
- Case Law
McKinley v. Guaranty National Ins. Co (ID)
159 P.3d 884 (2007)
Bad FaithStatus UpdatesCommercial PropertyCyberGeneral Liabilitythe Idaho Supreme Court expanded on what this communication duty entails proactively. The court held that an insurer must make a diligent effort to investigate and subsequently "communicate the results of such investigation to the insured" . In McKinley, the insurer received early settlement overtures from the claimant a month before a formal policy limits demand was made.
- Case Law
Chateau Chamberay Homeowners Assn. v. Associated Internat. Ins. Co (CA)
90 Cal. App. 4th 335 (2001)
Bad FaithAutoCommercial AutoCommercial PropertyGeneral LiabilityHomeownersSolidified the "genuine dispute doctrine" as applied to factual disagreements (such as differing expert opinions). The court held that an insurer denying or delaying payment due to the existence of a genuine, objectively reasonable dispute over coverage liability or valuation is not liable for bad faith.
- Case LawReservation of RightsCommercial AutoGeneral LiabilityHomeownersInland / Ocean MarineProfessional Liability
25 Cal.4th 489, the Court held that an insurer may fund a settlement of a potentially uncovered claim and later seek reimbursement from the insured. To do so, the insurer must not only have an initial ROR, but must explicitly notify the insured of the intent to accept the settlement and offer the insured the opportunity to assume their own defense .
- Case Law
Zilisch v. State Farm Mut. Auto. Ins. Co., 196 Ariz. 234 (AZ)
995 P.2d 276 (2000)
Status UpdatesGeneral LiabilityInsurers owe duties of a fiduciary nature, including equal consideration, fairness, and honesty. An insurer acts in bad faith if it deliberately stalls, delays communication, or forces the insured to go through "needless adversarial hoops" to achieve their rights under the policy, even if the claim is ultimately paid. - Current Status: Good law. - Clearwater v. State Farm Mut. Auto. Ins.
Historical court cases are for reference only and may be superseded, distinguished, or abrogated.
Applicable Letter Templates
- Liability & Damagespartial denial
- Denial / Closurefull denial
- Coverage Investigationreservation of rights
- Post-Resolutionclosing
- FNOL / Intakeacknowledgment
- Coverage Investigationreservation of rights
- Payment & Settlementsettlement
- Payment & Settlementpayment
- Coverage Investigationstatus
- Post-Resolutionsubrogation
- FNOL / Intakeacknowledgment
- Coverage Investigationstatus
- Denial / Closurefull denial
- Denial / Closurepartial denial
- Payment & Settlementpayment
- Coverage Investigationcoverage investigation
- Coverage Investigationreservation of rights
