Commercial General Liability Insurance (CGL) policy protects the business from financial loss that arises from property damage or bodily injury, personal injury caused by the services, business operations or employees. It covers non-professional negligent acts. This policy does not cover all risks a business may face.
Situations in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages:
- While visiting your business, a customer trips on loose flooring and is injured.
- An employee in your painting or construction business accidentally leaves water running, causing substantial damage to a customer’s home.
- A class action lawsuit is filed against your business, alleging advertisements constituted misleading information.
Commercial General Liability Policy coverage:
- Policy include premises coverage, which protects the business from claims that occur at the business’ physical location during regular business operations.
- CGL may also include coverage for bodily injury and property damage that is the result of finished products. Excess liability coverage can be purchased in order to cover claims that exceed the limit of the CGL policy.
- Some commercial general liability policies may have exclusions. For example, a policy may not cover the costs associated with a product recall.
- It cover the costs of your legal defense and will pay on your behalf all damages if you are found liable—up to the limits of your policy
Standard CGL includes:
- Coverage A: Bodily Injury and Property Damage Liability
- Coverage B: Personal and Advertising Injury
- Coverage C: Medical Payments
Other Liability covered :
- Directors and Officers liability
- Liquor liability
- Pollution liability