Commercial General Civil Liability Insurance Policy

Business owners work very hard to operate and need protection against unexpected accidents or liabilities, which could otherwise put them out of business. Business general liability insurance, or CGL, is designed to keep business assets and resources protected and insured in the event a claim arises.

Overview

Commercial General Liability (CGL) insurance policies are very important protection for policyholders, providing extensive defense and indemnity coverage against bodily injury and property damage claims. CGL policies are generally written on standard policy forms developed by national insurance industry organizations.

Importance of Commercial Liability Insurance

Operating a business in a litigious society like the one we have greatly increases the chances of a potential claim or lawsuit. It’s important for business owners to know they have protection, so they can focus on running their business.

A CGL policy assumes responsibility for the costs of injuries to you and your employees, as well as the cost of your legal defense and settlement.

The most common coverage items are listed below:

Lawsuits
research
settlements
injury damage
punitive damages
non-monetary damages
compensatory damages
Rental Property Losses
Claims against false advertising
Claims against copyright infringement

If you’re wondering how you’ll determine your coverage needs, it depends on the nature of your business, your location, and the perceived risk of the business. For example, you need more coverage if you are a building contractor as opposed to a consultant or a web designer. This is because both businesses have different natures and levels of perceived risks.

The benefits of a CGL policy

Insurance companies understand about you and your business. They see the in-depth details of your business, including quality control, security standards, and risk management.

Bodily injury coverage helps protect you or the injured party if it is caused by your business operations.

Personal injury coverage helps protect you from defamation, slander, false arrest, and wrongful entry.

Advertising injury compensation covers your legal liability for a wide range of crimes due to the advertising of your company’s services and goods.

The importance or requirements of a CGL policy for a business owner cannot be stressed enough. Without any or adequate protection, a business owner can be faced with a crippling claim at any time, and this level of uncertainty will make running a business nearly impossible. With the importance of protection properly understood, ensuring an adequate level of coverage level is of secondary concern. With the help of a qualified agent/broker, business owners can get the coverage and peace of mind to focus on operating.