CGL Policy Coverage (Commercial General Liability)

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CGL Policy Coverage

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CGL Policy Coverage. As a business owner, you make every effort to ensure safety and security. However, sometimes, incidents occur that are out of your hands and property can become damaged or people can suffer injuries. Should either of these things happen on the premises of your business or as a result of products or services you offer, you could be held liable. If that happens, you could be looking at serious financial turmoil.

How can you protect your business and yourself from these types of legal issues and the costs that are associated with them? - With commercial general liability insurance.

What is offered by CGL policy coverage? The commercial general liability policy protect businesses against liability claims for bodily injury & property damage arising out of premises, operations, products, and completed operations.

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What Is CGL Insurance?

Commercial General Liability insurance (CGL), also known as business liability insurance or simply general liability insurance, is a type of insurance policy that is specifically designed for businesses. It safeguards business owners from the any property damage or bodily injury claims that individuals may file against an organization. For instance, if a client sustains an injury as a result of a faulty product you sold them and files legal a claim, your CGL policy coverage can pay for the costs (medical and legal fees etc.) associated with the claim.

What Does CGL Insurance Cover?

Commercial general liability covers a wide-range of things, including:

  • Bodily injury: A CGL policy will protect you from any claims that may arise as a result of a bodily injury. These claims can be due to accidents that may occur on the premises of your business, products that you sell, or services that you offer. For example, if a vendor sues you after he slips, falls, and breaks a leg at your office, CGL policy coverage pays the costs of that lawsuit.
  • Property damage: If someone else's property is damaged while on the premises of your business or if you damage another person's property off-site while performing business-related activities, this policy will protect you. For instance, if you are installing a swimming pool and accidentally hit a pipe and cause a flood, your CGL policy would cover the cost of the property damage.
  • Personal and advertising injuries: A CGL insurance policy will also cover any damage caused as a result of personal and advertising injuries, including damage to someone else's character and/or reputation. This includes libel and slander, false accusations, copyright infringement, the use of someone else's ideas, or false arrest. For instance, if you post a negative comment on social media about one of your competitors, your comment causes damage to your competitor's reputation, and sues you, a CGL policy will cover you.
  • Medical expenses: If someone sustains an injury on the premises of your business and requires medical treatment, the CGL policy will cover the cost of those medical expenses. These medical expenses can include surgeries, hospital stays, emergency transportation, extended medical care, in-home medical care, and even funeral expenses.
  • Legal fees: Your CGL policy will also cover any legal fees that are associated with any claims that are filed against you that relate to the above-mentioned situations. This includes the cost of your defense attorney and court fees.

Does CGL Insurance Exclude Anything?

While commercial general liability insurance does cover a broad-range of things, there are some things that it will not cover. Exclusions under CGL policy coverage include:

  • Injuries suffered by employees. Should an employee become injured on the job, CGL insurance will not cover the costs of those injuries. For that, you would need a Workers' Compensation insurance policy.
  • Professional errors. If you make a professional mistake, a CGL policy will not cover it. In these instances, you would need a professional liability policy.
  • Vehicle coverage. A CGL insurance policy will not cover your vehicle or any damages that your vehicle may sustain. A commercial auto insurance policy is what you will need to protect your vehicle(s).
  • Intentional acts. If damages or injuries are the result of an intentional or planned act, a CGL insurance policy will not cover those damages or injuries.

How Much Does CGL Policy Coverage Cost?

The price of the CGL policy depends on several factors, including business size, location and type. Consult with a commercial broker to determine which coverage types you need and to fully protect your business' potential liability at the lowest possible premium.

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Read other informative articles on small business commercial insurance including costs and coverages.

Small Business Insurance Articles

Get useful tips and information about how much commercial insurance costs, small business risks and exposures, how insurance regulations effect your businesses' and detailed descriptions of coverages and exclusions and more. Most small businesses need to buy the following four types of insurance at a minimum to cover their operations from every day risks:

Property Insurance: This policy covers a business if the property used in the business is damaged or stolen as the result of common perils like fire or theft. Commercial property insurance covers the buildings, structures and also business personal property - which includes furniture, inventory, raw materials, machinery, computers and other items.

Liability Insurance: Any company can be sued. Slip-and fall lawsuits are very common and be costly. Customers can claim you injured them or damaged their property - and lawsuits are very expensive. Commercial liability insurance pays damages and can include attorney's fees and other legal expenses. It also ca pay for the medical bills of injured third parties

Commercial Auto Insurance: For vehicles owned by the business. Commercial auto insurance pays bodily injury or property damage costs for which the business is found liable - up the the policy limits for liability and property damage.

Workers Compensation Insurance: In almost every state employers must provide workers comp when there are W2 employees. Workers compensation pays for the medical care of employees and can replace a portion of lost wages - regardless of who was at fault for the injuries.

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