CGL Policy Coverage (Commercial General Liability)

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.

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.

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.

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.