Commercial General Liability Insurance: what is it? and what it covers, read here!
Understanding Commercial General Liability Insurance, Commercial General Liability Insurance: what is it? and what it covers. read here!
Commercial General Liability (CGL) insurance is a crucial safeguard for businesses, offering protection against financial losses stemming from property damage, and personal, and advertising injury liabilities. This article delves into the coverage provided by CGL insurance, considerations when purchasing, and additional liability coverages that businesses may find beneficial.
Table of Contents
What Commercial General Liability Insurance Covers
Coverage A: Bodily Injury and Property Damage Liability
CGL policies typically cover legal defense costs and pay for damages resulting from non-professional negligent acts, bodily injury, or property damage. This includes incidents arising from business operations, premises, or products. Mental injuries and emotional distress are also considered bodily injuries.
Coverage B: Personal and Advertising Injury
This section protects against liabilities arising from offenses such as libel, slander, false arrest, copyright infringement, and wrongful eviction. It provides a safety net for businesses facing legal challenges related to personal and advertising injuries.
Coverage C: Medical Payments
Offering limited coverage, medical payments include prompt settlements for injuries sustained by non-employees on the insured’s premises or due to business operations. This no-fault coverage ensures quick resolution of smaller medical claims without litigation.
Purchasing Commercial General Liability Insurance
Stand-alone policy, Business Owners Policy (BOP), or Commercial Package Policy (CPP)
Businesses can acquire CGL insurance as a stand-alone policy, part of a Business Owners Policy (BOP), or within a Commercial Package Policy (CPP). Consulting with an insurance professional helps determine the most suitable coverage and whether additional protection, such as a commercial excess (umbrella) policy, is necessary.
Additional Liability Coverages to Consider
Directors and Officers’ Liability
Directors and Officers liability insurance safeguards directors and officers from damages resulting from alleged or actual wrongful acts committed in their positions. This coverage extends to employees in some cases, providing protection against errors, misstatements, omissions, and breaches of duty.
Liquor Liability
Essential for businesses involved in alcohol-related activities, liquor liability insurance protects against claims arising from intoxicated patrons causing harm. It can be added to a commercial liability policy or purchased as a stand-alone policy.
Pollution Liability
Designed for property owners, managers, and developers, pollution liability coverage shields against a broad range of environmental liabilities. This includes sudden and accidental as well as gradual pollution events that may result in bodily injury, property damage, or pollution clean-up costs.
Understanding the components of Commercial General Liability insurance and considering additional liability coverages is vital for businesses to mitigate risks effectively. Consulting with insurance professionals helps tailor coverage to specific business needs, ensuring comprehensive protection against various liabilities.
