Business owners work very hard to operate and need protection against accidents or unexpected liabilities that could otherwise put them out of business. Commercial General Liability Insurance, or CGL, has been designed to keep business assets and resources protected and insured in the event that a claim arises.

General description

Commercial General Liability (CGL) insurance policies are very important protection for policyholders, as they generally provide defense and compensation coverage against claims for bodily injury and property damage. 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 ours greatly increases the chances of a possible claim or lawsuit. It’s important for business owners to know that they have protection, so they can focus on running their business.

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

The most common coverage items are listed below:

Lawsuits

Research

Settlements

Injury damage

Punitive damages

Non-monetary damages

Compensatory damages

Loss in rental property

Claims against misleading advertising

Claims against copyright infringement

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

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, safety 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 libel, defamation, false arrest, and trespassing.

Advertising damage 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 to a business owner cannot be emphasized enough. Without adequate protection, a business owner can face 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 the secondary concern. With the help of a qualified agent / broker, business owners can get the coverage and peace of mind to focus on trading.