Commercial general liability (CGL) insurance is a critical component of your overall company insurance package, and it should not be overlooked. It safeguards the assets of your organization by providing protection against liability claims brought against your firm. These may include claims arising from injuries or property damage that occur on your company premises, as well as claims arising from errors or omissions on your part or those of your staff while doing business. If you are sued, CGL insurance will pay for your legal costs and any judgements you may be required to pay. It also offers coverage for allegations of libel, slander, copyright infringement, and false advertising, among other things.
About the Business General Liability Factors
Business general liability insurance does not cover every kind of potential risk that may arise.
There are three kinds of business liability risks covered by CGL policies:
- Death and property damage resulting from the ownership and management of the business premises, or as a consequence of activities performed both on and off the company grounds, are covered by this policy.
- Bodily harm or property damage that occurs as a consequence of defective goods or improperly executed procedures (work performed by your business).
- Unprofessionalism on the part of independent contractors and subcontractors that you employ.
Claims may be classified into three categories, each of which will result in a payout from the insurance company:
- An accident resulting in physical harm or property damage for which your company is legally liable.
- Any personal harm or advertising injury for which the company is determined to be legally liable
- Health-care costs for people who are harmed on the business’s property or by its activities, regardless of who is to blame
Despite the fact that the policies serve as your first line of defence against liability claims brought against your company, they do not provide coverage for directors, and officers liability, employment practices liability, professional liability, employee benefits liability, liquor liability, or workers’ compensation claims. In order to get this kind of coverage, you will need to purchase additional policies or add endorsements to the existing policy.
Every company, regardless of its size, is susceptible to litigation and the related expenses of being found liable for the damage of others.
General liability insurance coverage is required and recommended for all companies, regardless of their size or mode of operation. It is the purpose of this kind of insurance to protect the business, often known as the insured, against lawsuits or claims resulting from an insured’s responsibility for property damage or physical harm. The general liability insurance coverage is intended to cover acts of negligence that are not the result of professional negligence. It is defined as neglecting to provide adequate or typical care for something or someone in accordance with accepted standards of general liability insurance.
General liability insurance would typically contain four kinds of coverage: Bodily Injury as well as Property Damage Liability; Personal Injury Liability; Medical Payments; and Tenants Legal Liability (sometimes known as “Tenants Legal Liability”). What follows is an explanation of how each of these coverage works, as well as why it is essential to have them.