Commercial general liability insurance protects your company from financial losses if your services or products cause property damage, personal injury or advertising injury to another person. This article helps you understand this coverage. Talking to your insurance agent can help you decide if it's appropriate for your business.
Examples of Incidents that May Be Covered Under CGL Insurance
Every CGL policy varies. So, it's important to review your general liability insurance coverage with an expert you trust. However, most policies cover similar incidents. Here are a few examples:
- A customer enters your business and trips over a loose tile. They fall and get hurt.
- An employee in your landscaping business leaves the hose running at a customer's home, causing water to flood into the house.
- Someone files a lawsuit against your company, saying your ads contain misleading claims.
Let's take a closer look at the coverage types.
What Does General Liability Insurance Cover?
Liability insurance covers legal defense costs and damages if the court finds you liable for your business mistakes. It only pays expenses up to your policy limit. It's important to protect your business assets from lawsuits that could drain your savings and threaten your business. That's where your CGL policy can benefit your long-term security.
Bodily Injury and Property Damage
This coverage pays for losses due to bodily injury or property damage to others. It covers non-professional negligence or liability associated with doing business.
Your insurance agent can help you understand the exclusions in your policy. However, you might be able to cover these with other endorsements or policies. These include workers' compensation, employment practice liability, pollution liability and liquor liability. If these protections are essential to your business, work with your insurance agent to amend your coverage as needed.
Personal and Advertising Injury
This portion of your general liability policy covers liabilities due to claims of:
- Copyright infringement
- Wrongful eviction
- Invasion of privacy
- False arrest
- Malicious prosecution
- False advertising
So, if a competitor claims that you unfairly targeted them in your advertising, then this coverage can help you respond to the claim.
Medical payments coverage pays for injuries caused by an accident that takes place at your business. It might cover harm to clients or other third parties (excluding employees). The coverage initiates without legal actions, which can save you money on legal expenses. It helps you respond to customer injury claims in a timely way.
Additional Liability Options
Talk to your insurance agent about the type of business you operate. They can help you determine any other liability insurance that may help protect your business assets. General liability insurance is usually not a legal requirement. But, almost every public-facing business has liabilities and risks that make it extremely valuable to have.