Commercial General Liability
Commercial General Liability (CGL) policies protect businesses from financial loss should they be liable for property damage or personal and advertising injury caused by your services, business operations, or your employees. It covers non-professional negligent acts.
Here are just a few examples of situations in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages:
A customer slips on a wet floor at your place of business and is injured.
An employee in your electrical business accidentally leaves water running, damaging a customer’s home.
A class action lawsuit is filed against your company, alleging that your advertisements were false and misleading.
What Commercial General Liability Insurance Covers?
A CGL insurance policy will usually cover the costs of your legal defense and will pay on your behalf all damages if you are found liable-up to the limits of your policy. CGL coverage is one of the most important insurance coverages, because liability suits are so common.
Standard CGL Insurance includes:
Bodily Injury and Property Damage
- Bodily injury and property damage coverage provides protection against losses from the legal liability of insureds arising out of non-professional negligent acts or for liability arising out of their premises or business operations. Mental injuries and emotional distress can also be included and covered by CGL.
Personal and Advertising Injury Liability
Personal and advertising injury liability protects an insured against liability arising out of certain offenses, such as:
- Malicious prosecution
- False arrest
- Infringing on another’s copyright
- Wrongful eviction, entry or invasion of privacy
- Use of another’s advertising idea
Limited coverage for medical payments includes payments for injuries sustained by a non-employee caused by an accident that takes place on the insured’s premises or when exposed to the insured’s business operations. Medical payments coverage can be triggered without legal action.
This provides for prompt settlement of smaller medical claims without litigation. It is included in the CGL policy and pays for all necessary and reasonable medical, surgical, ambulance, hospital, professional nursing and funeral expenses for a person injured or killed in an accident taking place at the insured’s premises or arising from business operations.