Commercial General Liability Insurance
Commercial General Liability (CGL) Insurance is a type of insurance that provides coverage for businesses against claims of bodily injury, property damage, and personal injury arising from their operations, products, or services. It is a fundamental component of a comprehensive risk management strategy for companies of all sizes.
Businesses are covered by commercial general liability (CGL) insurance against claims of personal harm, property damage, and bodily injury resulting from their activities, goods, or services. It is an essential part of any company’s overall risk management plan, regardless of size.
Benefits of Commercial General Liability Insurance
Coverage Areas
Bodily Injury: Covers medical expenses and legal costs if someone is injured on your business premises or as a result of your business operations.
Policy Limits
CGL policies have specified limits that indicate the maximum amount the insurer will pay for claims. These usually include per occurrence limits and aggregate limits for the policy term.
Exclusions
Policies often have exclusions for specific risks, such as professional liability (which requires a separate policy), employee injuries (covered by workers' compensation)
Defense Costs
Most CGL policies cover legal defense costs, even if the claims are found to be baseless, which can be crucial for protecting a business’s financial health.
Financial Protection
CGL insurance helps shield businesses from potentially devastating financial losses due to lawsuits or claims, protecting their assets.
Contractual Requirements
Many clients and vendors require proof of general liability insurance before engaging in business relationships, making it essential for operational readiness.