Many small business owners have no idea what type of commercial insurance they really need. After all, nobody wants to spend money unnecessarily. For most, all that is required is general liability coverage.
What is Commercial General Liability Insurance?
Your CGL policy protects your business from financial loss in the case of property damage, bodily injury, and advertising damage. For instance, if you face a lawsuit, then your commercial general liability insurance would cover medical, legal, and compensatory damages. You could file a claim under your CGL in each of these situations.
- While visiting your business, a customer slips and falls into a display and suffers an injury.
- An employee pouring concrete at a client’s home accidentally leaves the hose running This causes damage to the home and yard.
- You must defend against a class action lawsuit alleging false advertising.
Unfortunately, liability suits happen all too frequently. A business can find themselves liable for expensive legal fees and damages that have the power to put them into bankruptcy. However, with a CGL policy, they won’t have to worry about the unexpected.
So, while General Liability Insurance protects commercial insureds from most liability exposures other than automobile and professional liability, CGL Insurance is a standard insurance policy issued to business organizations to protect them against liability claims for bodily injury and property damage arising out of premises, operations, products, and completed operations; and advertising and personal injury liability.
What is Covered and What is Not
If a non-employee has an accident that takes place at your business or as a result of one of your operations, then your CGL will provide limited coverage for their medical expenses. Claims like these often get paid out without the need to go through litigation. This eliminates costly legal expenses.
- Bodily injury and property damage
- Mental injuries and emotional distress
A commercial general liability policy does not cover your employee’s injuries. Both Workers’ Compensation and Employment Liability fall under a different type of plan and you must purchase them separately.
An insurance professional, like Post Insurance, can help you determine which coverages your business needs and the best way to get them.
Personal and Advertising Injury
General Commercial Liability Insurance also protects an insured when a claimant files against them for certain offenses.
- Libel or Slander
- Copyright Infringement
- Malicious prosecution
- Using Another’s Advertising Ideas
- Invasion of Privacy
© Copyright 2020. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.