Commercial General Liability Insurance
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What Is Employers Liability Insurance?
Commercial general liability insurance covers business-related injuries and property damage caused by your employees or in some cases, contractors. It’s also known as CGL or CG liability. For example, say a worker slips and falls while on your property, injuring themself; they might be able to sue you for damages in civil court. This is where CGL insurance comes into play. It provides coverage if someone sues you for things like slip and fall injuries, slander, libel, and more.
Importance of Commercial General Liability Insurance
If you own a business that sells products or services, no matter how big or small, you should consider buying commercial general liability insurance (CGL). Although business owners typically think of property damage and product liability when they consider purchasing CGL, they may be surprised at some of its other benefits.
Businesses are liable for injuries and damages caused by their actions and activities. A CGL policy helps protect your income if someone claims injury or illness due to your actions (or inactions). For example, if someone gets sick from something you sold that was not safely prepared, they could claim damages from your business under CGL.
Types of Commercial General Liability Insurance
There are different kinds of commercial general liability insurance policies. There are occurrence-based policies and claims-made policies.
- An occurrence policy covers an event that takes place during a specific time period, even if it was discovered later.
- A claims-made policy covers an event only after it has happened.
- There is also an umbrella policy that can cover larger financial losses than a standard general liability policy.
- Lastly, there’s product liability insurance, which protects business owners who sell products or services from being sued by consumers for injuries caused by their products or services, as well as errors in their production process or design flaw in their products or services.
Important Things to Consider
Since your general liability insurance is a crucial line of defense in protecting your business from a variety of claims, it’s important that you have the proper coverage and enough of it. Here are some things to consider when shopping for commercial general liability insurance:
- Types of coverage available - While different policies will offer different types and amounts of coverage, common types include bodily injury, property damage, personal injury, products-completed operations hazard, and broad form.
- Limits on damages – Your commercial general liability policy may cap how much money you’ll be reimbursed if you get sued. For example, if someone slips and falls in your parking lot while visiting your store, they might sue you for big dollars in medical bills.
Limitations Of Commercial General Liability Insurance
There are several limitations of commercial general liability insurance that you should be aware of when shopping for an insurance policy.
- These include but are not limited to: An aggregate limit on coverage, which states that if more than one claim is made against your company, all claims must be put into a pool and then covered by your policy up to a certain dollar amount.
- This prevents any single injury or property damage claim from becoming so high that it could bankrupt your business. Only a small percentage of businesses carry umbrella coverage; however, it may be worth looking into if you have a large pool of assets or other businesses in addition to your day-to-day business operations.
Do I Need Commercial General Liability Insurance?
In today’s business world, there are so many different risks you need to prepare for. To ensure your company is protected from all of them, it’s vital that you partner with a reputable insurance agent someone who can provide complete coverage for every potential threat. Don’t settle for less; shop around and get in touch with a commercial general liability insurance expert today!
