What Does Commercial General Liability Cover?

March 13, 2023

Commercial general liability insurance protects businesses from lawsuits filed by individuals who allegethat the company was responsible for their injuries. The policy typically covers any legal fees and damages that may be awarded against the business andproperty damage. This type of insurance is commonly used by companies that sellproducts, provide services, or operate facilities. So, What Does CommercialGeneral Liability Cover? This article will help you understand what general commercial liability covers and gives you the benefits of commercial generalliability insurance.

What Is Commercial General Liability Insurance,And What Does It Cover?

Commercial general liability insurance protects businesses from various claims, including bodily injury,property damage, personal injury, and advertising injury. This type ofinsurance is essential for businesses of all sizes, as it can help to protectthem from the financial burden of litigation and damages. 

Commercial general liability insurance is one of the most important types of insurance for businesses. It protects many potential liabilities, including bodily injury, property damage,and personal injury. Most commercial general liability policies will cover claims arising from your business activities, such as accidents on your premises or caused by yourproducts or services. This coverage can help protect you from costly lawsuitsand settlements.

In addition to providingfinancial protection in the event of a liability claim, commercial generalliability insurance can also help improve your business reputation by showingpotential customers that you're serious about protecting yourself and them fromrisks. This coverage can give you peace of mind and help you focus on growingyour business.

What Are The Different Levels Of Coverage?

There are four levels of coveragefor general commercial liability: bodily injury, personal and advertisinginjury, medical payments, and property damage.

Bodilyinjury covers any physical harmyour business causes to another person. It can include slips and falls or ifsomeone is injured by one of your products.

Personaland advertising injury: This covers any harm yourbusiness causes to another person's reputation or livelihood. It can includethings like libel or slander.

Medicalpayments: This covers any medicalexpenses that a person incurs because of an injury that your business caused.

Propertydamage: This covers any damage yourbusiness causes to another person's property.

Why Do I Need Commercial General Liability Insurance?

If you are in the business of providing goods or services to others, then you need to have commercial generalliability insurance. This type of insurance protects your business fromlawsuits that may arise from injuries or damages resulting from your businessoperations.

Without commercial general liability insurance, you would be responsible for paying these costs out ofyour pocket, which could quickly bankrupt your business. Even if the law suitultimately decides in your favor, the legal fees alone can be enough to put asmall business under. That's why commercial general liability insurance is soimportant - it helps protect your business from financial ruin in a lawsuit.

When Should I Buy A Commercial General Liability Policy?

Commercial general liabilityinsurance is one of the most important types of insurance for businesses. It protects your business from third-party claims of bodily injury or property damage, as well as from lawsuits alleging your business caused someone elseharm. Every business is different, so there is no one-size-fits-all answer towhen you should buy a CGL policy. However, there are a few general guidelinesyou can follow.

·        If you have any employees,purchasing a CGL policy as soon as possible is a good idea. Even if youremployees are not engaged in high-risk activities, they could still accidentally injure or damage someone's property. If you wait until after anaccident happens, it may be too late to get coverage.

·        If you lease office space or othercommercial property, your landlord may require you to have CGL insurance. Even if your landlord doesn't need it, it's still a good idea to have coverage incase something happens at your leased premises that cause third-party injury orproperty damage.

·        If you sell products or services,you should consider buying a CGL policy even if you don't have any employees orleased premises. That's because the product and professional liabilityexposures can arise from just about any business activity. 

What Other Coverage Should I Carry To Protect My Business From Lawsuits And Liability?

Business owners should consider afew other types of coverage to help protect their businesses from lawsuits andliability. One is product liability insurance, which can help cover damages or injuries caused by products your business sells. Another is profession alliability insurance, which can help protect against mistakes or errors made by professionals working for your business.

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