General Commercial Liability Insurance, often referred to as Commercial General Liability (CGL) insurance, is a crucial component of business insurance that provides protection for a wide range of liability-related risks that businesses may face. Here’s an overview of what general commercial liability insurance typically covers:
1. Bodily Injury Liability
This coverage helps protect your business in case someone is injured on your premises or as a result of your business operations. It includes coverage for:
Medical Expenses: Coverage for medical bills incurred by the injured party.
Legal Defense Costs: Coverage for legal fees and court costs if you are sued as a result of the injury.
2. Property Damage Liability
Property damage liability coverage comes into play when your business is responsible for damaging someone else’s property. It includes coverage for:
Repair or Replacement Costs: Coverage for the cost to repair or replace the damaged property.
Legal Defense Costs: Coverage for legal expenses if you are sued over the property damage.
3. Products and Completed Operations Liability
This aspect of CGL insurance covers damages or injuries caused by your products or services after they have been sold or completed. It includes coverage for:
Defective Products: Coverage for injuries or damages resulting from a faulty product.
Errors in Services: Coverage for damages arising from errors in services your business provides.
4. Personal and Advertising Injury
This coverage protects against non-physical injuries, such as libel, slander, false arrest, copyright infringement, or invasion of privacy. It includes coverage for:
Legal Defense Costs: Coverage for legal expenses in cases involving personal and advertising injury.
Damages: Coverage for damages awarded to the injured party.
5. Medical Payments
Medical payments coverage provides for the medical expenses of individuals who are injured on your premises or as a result of your business activities, regardless of whether you are at fault. This coverage is meant to expedite the settlement of small medical claims and prevent them from escalating into lawsuits.
6. Fire Legal Liability
Fire legal liability coverage applies when your business is responsible for fire damage to premises that you rent or occupy but do not own. It covers the cost of damage to the rented space, including the landlord’s property.
7. Additional Coverages and Extensions
Depending on the policy and insurer, general commercial liability insurance may offer additional coverages and extensions tailored to your business needs. These can include:
Liquor Liability: Coverage for businesses that serve or sell alcohol.
Pollution Liability: Coverage for environmental damage caused by your business.
Employment Practices Liability: Coverage for lawsuits related to employment issues like
discrimination or wrongful termination.Cyber Liability: Coverage for data breaches and cyberattacks.
Umbrella Liability: Additional liability coverage that goes beyond the limits of your primary policy.
It’s important to note that the specific coverage and limits of a commercial general liability insurance policy can vary depending on the insurer and the policy’s terms and conditions. To ensure that your business has the appropriate coverage to address its unique risks, it’s advisable to work with an insurance professional or agent who can assess your needs and help you select the right policy and coverage limits.
