Business owners work very hard to operate and need protection against unexpected accidents or liabilities, which 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 should a claim arise.
General description
Commercial General Liability (CGL) insurance policies are very important protection for policyholders, providing extensive coverage to defend and indemnify against bodily injury and property damage claims. 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 the one we have greatly increases the chances of a potential claim or lawsuit. It’s important for business owners to know they have protection, so they can focus on running their business.
A CGL policy assumes responsibility for covering the costs of injury to you and your employees, as well as covering the cost of your legal defense and settlement.
The most common coverage items are listed below:
Lawsuits
research
settlements
injury damage
punitive damages
non-monetary damages
compensatory damages
Losses on rental property
Claims against misleading advertising
Claims against copyright infringement
If you’re wondering how you’ll determine your coverage needs, it depends on the nature of your business, its location, and the perceived risk of the business. For example, you need more coverage if you are a building contractor as opposed to a consultant or web designer. This is because both businesses have different natures and levels of perceived risks.
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, security 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, slander, false arrest, and trespass.
Compensation for advertising injuries 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 GLC policy to a business owner cannot be stressed enough. Without any or 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.