As a business owner, protecting your company from unexpected events is crucial. One way to do this is by obtaining commercial general liability (CGL) insurance. This insurance policy provides coverage against bodily injury, property damage, and personal injury claims. In this article, we will delve deeper into what CGL insurance is, what it covers, and the best companies that offer CGL insurance.
What is Commercial General Liability Insurance?
CGL insurance is a type of policy that protects businesses from third-party claims for bodily injury, property damage, and personal injury. These claims could arise from various occurrences, such as accidents that occur on business premises or damage caused by business operations. CGL insurance policies usually have two main coverage components: bodily injury and property damage liability and personal and advertising injury liability.
What Does Commercial General Liability Insurance Cover?
CGL insurance covers claims made by third parties for bodily injury and property damage that result from the business’s operations. It also covers claims made for personal and advertising injury, which includes offenses such as libel, slander, and copyright infringement.
Examples of bodily injury claims include slip and fall accidents, injuries caused by a business’s products or services, and accidents involving the use of business vehicles. Property damage claims could include damage to a third party’s property, such as a customer’s car damaged in a parking lot.
Personal and advertising injury claims are less common but can still occur. These claims usually involve accusations of damage to a person’s reputation, such as defamation or copyright infringement.
What is Not Covered by Commercial General Liability Insurance?
CGL insurance typically does not cover damage to a business’s property or injuries to employees. It also does not cover intentional or criminal acts, such as fraud or theft.
It is important to note that CGL insurance is not a one-size-fits-all solution for every business. It is essential to review policy exclusions and limitations with an insurance professional to understand what is not covered under a specific policy.
FAQs:
Q: Is commercial general liability insurance required by law? A: CGL insurance is not required by law, but some industries or business contracts may require it.
Q: How much commercial general liability insurance do I need? A: The amount of coverage needed depends on the size and nature of your business. It is essential to review policy limits and exclusions with an insurance professional.
Q: Can I purchase commercial general liability insurance as a standalone policy? A: Yes, CGL insurance can be purchased as a standalone policy or as part of a broader business insurance package.
Best Companies for Commercial General Liability Insurance:
- Hiscox – Hiscox offers customizable CGL insurance policies to fit the specific needs of your business.
- Nationwide – Nationwide offers CGL insurance policies that include coverage for bodily injury, property damage, and personal and advertising injury.
- Travelers – Travelers offers CGL insurance policies with flexible coverage options, including optional endorsements to add additional protection.
- Progressive – Progressive offers CGL insurance policies that provide coverage for third-party bodily injury and property damage claims, as well as personal and advertising injury.
- Chubb – Chubb offers CGL insurance policies with a focus on risk management and loss prevention.
CGL insurance is an essential policy for businesses of all sizes to protect against unforeseen events that could lead to costly legal claims. It is essential to work with an insurance professional to determine the right amount of coverage and policy limits to meet your business’s needs. By considering the information presented in this article, you will be able to choose the best CGL insurance company to meet your business’s needs.