What does general commercial liability insurance cover? General commercial liability insurance, or commercial general liability insurance, provides protection from lawsuits filed by customers, clients, and vendors. It’s essential coverage for businesses operating in the modern world that sell products or services to other businesses or individuals. If you don’t have this coverage, your business could likely suffer financially or even go out of business if you’re sued and lose the case.
Commercial liability insurance, also known as general liability insurance, is a type of insurance that businesses can purchase to protect themselves from risks. These risks can come in the form of third-party lawsuits or settlements and can be related to things like property damage, personal injury, or advertising injuries. General commercial liability insurance can help cover the costs of these lawsuits or settlements, as well as any related legal fees. In some cases, it can also help cover the cost of medical expenses if someone is injured on your property.
There are four main types of coverage included in most commercial general liability insurance policies: bodily injury, property damage, personal and advertising injury, and medical payments. General commercial liability insurance also covers the legal defense for the insured when a third party files a lawsuit against them. The policy will pay for damages awarded by the court if the suit is successful.
A CGL policy covers third-party bodily injury and property damage claims, as well as advertising and personal injury claims. It can also provide coverage for certain pollution liability exposures. You can purchase a CGL policy as a standalone policy or as part of a business owner's policy (BOP). The most common types of BOPs are the Commercial Package Policy and the Professional Package Policy.
The Commercial Package Policy is designed to meet the needs of businesses that operate in many different fields but do not have specialized risks. The Professional Package Policy provides coverage to professionals who typically face high-risk situations such as architecture, engineering, financial planning, health care, and law practice. The Commercial Package Policy is more likely to be what you need if your business has employees and operations across multiple states, partners with other companies, or offers its products online.
This type of insurance can help protect your business from claims arising from property damage, personal injury, and more. Plus, it can also provide coverage for your legal defense costs if you are sued. Liability insurance can help ensure that your small business doesn't get buried under an avalanche of financial obligations. But what does general commercial liability insurance cover?
There are a few things that are typically excluded from a commercial general liability (CGL) policy. These exclusions can vary by insurer, so it's important to read your policy carefully and ask your agent or broker about anything you're unsure of. Here are some of the most common exclusions. Bodily injury or property damage that may result from the use of aircraft, watercraft, or autos that are owned, operated, rented, or loaned to any Insured is excluded. General Contractor’s coverage is not included in this CGL policy. You must have an additional contractor’s liability insurance to have protection for construction sites outside of the home. Whether or not you have homeowners coverage, if you do construction work outside of your home, you need additional coverage for that risk.
In technical terms, three primary coverage sections make up a CGL policy: premises liability, products liability, and completed operations. A CGL policy protects your business from financial loss resulting from claims of injury or damage to others caused by you or your employees. I The policy also covers certain types of losses related to the ownership or use of tangible property, such as losses due to theft or vandalism. A business owner needs to know the different types of protection afforded by their commercial general liability policy before filing a claim with their insurer.
1) Property Damage. Property damage is one of the core coverages of the CGL policy: Your policy protects against instances where you damage the property of someone else (or another company).
2) Bodily Injury.
3) Copyright Infringement
4) Legal Expenses.
5) Products Liability. What if your product injures someone? You can be sued for damages, including medical expenses and lost wages as well as pain and suffering. Product liability coverage will help pay for these costs.
6) Personal Injury to Others in General;
7) Personal Injury to Employees in General;
8) Spoilage of Products or Premises;
9) Loss of Business Income
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