Commercial General Liability Explained Briefly

A liability (CGL) policy functions as a safeguard to shield both you and your business against financial setbacks. In the course of providing services or products to the public your company could be held accountable, for injuries or damages sustained by a party. These liabilities may stem from accidents, mistakes (whether intentional or unintentional) or lapses in professional conduct that lead to harm or monetary loss for another individual. Despite the expertise and professionalism of you and your staff unforeseen circumstances cannot be entirely eliminated.

How Does Commercial General Liability Operate?

Commercial general liability serves as a risk management strategy tailored to protect your business against claims brought forth by parties. Depending on the nature of a companys operations a CGL policy can be customized to provide coverage across scenarios falling under the following categories;

 Bodily Injury Liability

If a patron or any other individual sustains an injury while on your business premises, you might be responsible, for covering their medical expenses. The inclusion of bodily injury coverage indicates that negligence played a role in the incident. While you may not have directly caused the injury if it occurs within your business establishment you could still be deemed liable. For example, if someone gets hurt because there were no warning signs, around the floor they could claim that it was your fault. A CGL insurance plan can cover expenses and nursing care for injuries. It also helps with funeral costs if someone is injured or killed on your business premises.

 Property Damage Liability;

If your business is held responsible for damaging someone’s property whether on or off your premises this policy can help you manage the financial burden of that responsibility. The damages to the party’s property could be linked to your business operations or a product you offer. For instance, if a household appliance made by your company malfunctions and causes a fire at a customer’s home you might be held liable for professional negligence.

 Personal and Advertising Injury Liability;

This coverage protects your company from liabilities stemming from business offenses like defamation, copyright infringement, wrongful arrest, invasion of privacy and slander.

Who Should Get CGL Insurance?

Every business owner should consider getting CGL insurance to safeguard their businesses from lawsuits that could have consequences. One legal claim, against your business could lead to ruin and harm its reputation irreparably.

To avoid situations you can protect your business by getting a Commercial General Liability (CGL) policy tailored to your industry. This policy can be purchased on its own included in a Commercial Package Policy or, as part of a Business Owners Policy. Having a CGL policy is essential for both contractors and tradespeople.

Does CGL Insurance Include Workers Compensation?

When it comes to insurance coverage for businesses there is typically a distinction made between protecting the public and safeguarding employees. The CGL policy is designed to cover parties. Does not extend to employment practices liability or workers compensation. If you need coverage, for injuries and employers liability you would need to purchase a workers compensation policy.