Business owners work extremely hard to operate and need protection against unexpected accidents or liabilities that could otherwise put them out of business. Commercial general liability insurance, or CGL, is designed to keep business assets and resources protected and insured should a claim arise.
Overview
Commercial General Liability (CGL) insurance policies are a very important protection for policyholders, broadly providing defense and indemnity coverage against personal injury and property damage claims. CGL policies are typically written on standard policy forms developed by nationwide insurance industry organizations.
The Importance of Professional Liability Insurance
Operating a business in a litigious society such as ours greatly increases the chances of a potential claim or lawsuit. It’s important for business owners to know they have protection so they can focus on running their business.
A CGL policy assumes responsibility for covering the costs of claims for you and your employees, as well as covering your legal defense costs and settlements.
The most common coverage items are listed below:
Lawsuits
Surveys
Settlements
Injury damage
Punitive damages
Non-monetary damages
Compensatory damage
Loss on rental properties
Claims against misleading advertising
Claims against copyright infringements
If you are wondering how to determine your coverage needs, it depends on the nature of your business, its location and the perceived risk to the business. For example, you need more coverage if you are a contractor as opposed to a consultant or a web designer. This is because both companies have different nature and level of perceived risks.
The benefits of a CGL policy
Insurance companies understand you and your business. They see the in-depth details of your business, including quality control, safety standards and risk management.
Bodily injury coverage helps protect you or the injured party if it is caused by your business operations.
Personal injury coverage helps protect you against libel, slander, false arrest and wrongful entry.
Advertising indemnity covers your legal liability for a wide range of offenses resulting from advertising your company’s services and goods.
The importance or requirements of a CGL policy for a business owner cannot be emphasized enough. Without any or adequate protection, a business owner can face a crippling claim at any time, and this level of uncertainty will make running a business nearly impossible. Once the importance of protection is sufficiently understood, the secondary problem is to ensure an adequate level of coverage. With the help of a qualified agent/broker, business owners can get coverage and peace of mind to focus on operations.
