Residential and commercial properties are exposed to many natural and man-made perils such as earthquake, tsunami, fire, storm, theft, and burglary. These unforeseen perils can occur anytime and cause severe damage to the property and its contents, resulting in huge financial losses for the property owner. Property insurance can protect the property owner from incurring such losses.
Accidents and negligence while conducting business operations can lead to liability exposure in various ways. This is why many businesses opt for Commercial General Liability (CGL) insurance to protect themselves against financial losses resulting from such lawsuits.
What does the Commercial General Liability (CGL) Insurance Policy cover?
Many small business owners buy this policy to get protection against liability claims like:
- Third-party bodily injury
- Third-party property damage
- Advertising injuries
- Reputational harm
- Personal injury
However, it typically excludes liability claims like:
- Vehicle liability
- Pollution claims
- Professional liability
- Contract disputes
Who needs Commercial General Liability (CGL) Insurance?
While State laws don’t mandate you to own a Commercial General Liability (CGL) Insurance policy, having such coverage protects your business from financial risk. It helps you cover legal defence fees, court costs, and settlements in the event of a customer or client filing a claim against your business.
Ideally, you should consider buying this policy if you:
- Own an office or building that is open to your clients or vendors
- Work near your client’s property
- Advertise marketing materials for your business
- Use social media personally or professionally
What other insurance does a business need for comprehensive coverage?
As the Commercial General Liability (CGL) Insurance policy does not cover many types of business liabilities, a new business might consider the following types of insurance for more comprehensive coverage:
- Professional liability coverage: Quality of work a company provides.
- Commercial property insurance
- Workers’ compensation insurance
- Cyber liability insurance
- Product liability insurance
- Hired and non-owned auto insurance
- Liquor liability insurance
A business or a company needs protection against various forms of damages and losses during its operations. Owning a Commercial General Liability (CGL) insurance policy can be a great saviour for protection against the impending liabilities and lawsuits resulting from operational accidents and business-related misconducts.