Commercial general liability insurance (CGL) is a type of insurance policy that helps protect businesses from claims of negligence, resulting in bodily injury, property damage, or personal injury to a third party. It offers protection against a variety of risks, including libel, slander, false advertising, and even copyright infringement. CGL policies are typically purchased by businesses to cover the costs of defending lawsuits and paying judgments or settlements. In the event of a lawsuit, the insurer will pay for the costs of defending the company and any damages that may be awarded to the plaintiff.
CGL policies usually consist of two main coverages: bodily injury and property damage. Bodily injury coverage protects businesses from claims of negligence that cause physical injury to someone other than an employee. Property damage coverage protects businesses from claims of negligence that cause damage to someone else’s property. CGL policies can also include other coverages, such as personal injury protection and advertising injury protection.
Who Needs Commercial General Liability Insurance?
Commercial general liability insurance is essential for any business that has customers, clients, or vendors. It is especially important for businesses that provide services or products, or that interact with the public in any way. CGL policies can help protect against a wide range of liabilities, including those related to:
- Personal injury
- Property damage
- Product liability
- Copyright infringement
- Libel/slander
- False advertising
CGL policies are also important for businesses that have employees, as they can help protect against claims of negligence related to workplace injuries. CGL policies can also provide protection in the event of a lawsuit alleging that the business failed to provide a safe working environment.
What Does Commercial General Liability Insurance Cover?
CGL policies can offer protection against a wide range of liabilities. These include claims of negligence related to:
- Bodily injury
- Property damage
- Personal injury
- Copyright infringement
- Libel/slander
- False advertising
- Product liability
- Employee injuries
- Medical expenses
CGL policies typically provide coverage for a variety of costs associated with defending a lawsuit, such as legal fees and court costs. If the policyholder is found liable, the policy will also provide coverage for any judgments or settlements awarded to the plaintiff.
How Much Does Commercial General Liability Insurance Cost?
The cost of CGL insurance policies varies depending on the type of business, the amount of coverage needed, and the type of risks the business is exposed to. Generally, larger businesses with more employees and more assets require more coverage and will pay more for their policies.
The cost of CGL policies can also vary depending on the insurer. It’s important to shop around and compare quotes from several different insurers in order to find the best deal. Additionally, businesses should make sure that their CGL policies are tailored to meet their specific needs in order to ensure that they are adequately protected.
Conclusion
Commercial general liability insurance is an important form of insurance that provides businesses with protection against a wide range of liabilities. It is especially important for businesses that have customers, clients, or vendors, or that interact with the public in any way. CGL policies can help protect against claims of negligence related to personal injury, property damage, product liability, copyright infringement, libel/slander, and false advertising. The cost of CGL policies varies depending on the type of business, the amount of coverage needed, and the type of risks the business is exposed to. Businesses should shop around and compare quotes from several different insurers in order to find the best deal.
