Buy CGL Insurance

CGL stands for Commercial General Liability Insurance, which is a type of insurance policy that protects businesses against financial loss from liability claims. This insurance covers businesses against claims made by third parties for injury or damage to property, as well as associated legal expenses.

CGL insurance typically covers a wide range of business activities, including product liability, personal injury, and advertising injury. The coverage is typically comprehensive and can be tailored to meet the specific needs of a business.

The average price of a standard $1,000,000/$2,000,000 CGL Insurance policy for small businesses ranges from $27 to $59 per month based on location, industry payroll, sales and experience.

You can be responsible for a number of occurrences during the normal course of business, which could result in varying degrees of financial loss. This is where CGL insurance can help. From medical bills, to malpractice claims, to personal injury claims, you could be liable for these, as well as punitive and compensatory damages if you are found liable. Some potential issues might stem from:

• Slip and fall cases or a custom tripping and falling on damaged flooring within your commercial space.
• An employee which leaves water running and causes damage to a client's home.
• Misleading advertising, or class action lawsuit against your business.

These are a few of the many instances you can be found liable as a business owner.

Basically your legal defense and coverage of damages which stem from injuries or loss, should be covered by your CGL insurance policy. Not only will this protect you financially, but will also protect your company in the event of a lawsuit. A basic policy will cover:

1. Coverage A - Bodily Injury and Property Damage: The property damage or bodily injury which stems from non-professional negligent acts, are covered under this section of your CGL insurance policy. Mental injuries or distress claims might also fall under this category, even when physical injuries aren't present. worker's comp and employment practice liability are excluded under this clause. You can however purchase additional coverage for these protections. Pollution liability is also excluded.

Any high risk business entity should consider purchasing this limited coverage to protect themselves financially. Liquor, professional, and other liability risks might also be excluded (check with your insurer). An broker can assist you in choosing coverage options.

2. Coverage B - Personal and Advertising Injury Protection: Insured businesses are protected from personal or advertising injuries caused by their business; somethings which are covered include:

• Libel and slander claims.
• False arrest.
• Copyright claims.
• Entry/evasion of property or wrongful eviction claims.

3. Coverage C - Medical Payments: Personal injuries sustained by non-employees are covered with this coverage option. If an accident occurs in the business place, your company is protected to your coverage's extent. Even in the event of settlements you are covered, so this can limit litigation and attorney fees for your business.

You are covered for all necessary medical, ambulance, or surgical/medical care necessary for the injured party. No defense or legal liability coverage is afforded under this section of the CGL insurance policy(as is the case with coverage A and B).

CGL insurance can be purchased on its own or with a BOP policy or CPP (commercial package policy) insurance. It is best to discuss your options with an insurance agent prior to deciding. And, in the event CGL, BOP, and CPP aren't sufficient, umbrella (excess liability) policies are also available for businesses to consider.

Commercial General Liability (CGL) insurance is a type of policy that businesses purchase to protect against claims for bodily injury, personal injury, and property damage. Here are some examples of CGL insurance claims and how they could help pay for the lawsuit:

Example 1: Bodily Injury Claim
A customer slips on a wet floor in your retail store and breaks their arm. They decide to sue your business for medical expenses and loss of earnings during their recovery period. In this scenario, your CGL policy can help cover the costs of the lawsuit, including legal fees, medical costs, and any awarded damages or settlements.

Example 2: Property Damage Claim
If you own a construction company and your employee accidentally damages a client's property while on the job, the client could sue for damages. A CGL policy can help pay for the costs associated with this lawsuit, including repair or replacement costs for the damaged property, legal defense costs, and any awarded damages if the court rules in favor of the client.

Example 3: Personal and Advertising Injury Claim
Suppose you run a marketing company and inadvertently use copyrighted material in a client's campaign. The copyright holder could sue your company for infringement. A CGL policy covers personal and advertising injuries, so it could help pay for legal defense costs, any settlements or court-ordered judgements, and other related expenses.

Example 4: Product Liability Claim
If you run a food business and a customer becomes sick from food poisoning after consuming your product, they might sue your company for their medical expenses and other related costs. In this case, a CGL policy can help cover the costs associated with the lawsuit, including the customer's medical bills, your legal defense costs, and any damages or settlements that the court awards to the customer.

Example 5: Tenant's Legal Liability Claim
Suppose you lease a space for your business and accidentally start a fire, causing extensive damage to the property. The landlord could sue you for the costs of repairing or replacing the damaged property. A CGL policy could help pay for these costs, including legal fees, repair or replacement costs, and any damages awarded by the court.

Remember, the exact coverage will depend on the specific terms of your CGL policy. Always review your policy carefully and consult with an insurance professional to ensure you have adequate coverage for your business needs.