The purpose of Commercial General Liability or CGL is to protect business owners against claims of liability for any property damage, personal or body injury that occur on the premises of your business operations. It also covers bodily injury and property damage that is caused by your products or work that occurs away from your business premises.
One also comes across the term – Excess liability insurance or Umbrella liability insurance, that takes care of losses that exceed the limits of CGL policy. Here, the insured gets liability coverage for all those risks that are not covered in the basic commercial general liability. The prime aim of this insurance is to offer protection against any kind of financial loss or damage caused by your services, products, business operations and even your workers. For example, any injury to your customer who may slip or trip at your business premise will be covered.
Commercial General Liability is one of the most common insurance products that are sold. The reason is the growing awareness as well as the risk of the impact of a law suit on a business. The cost of CGL coverage is based on the kind of business you run. Typically, the costs would be based on its location and the size, etc. Some common types of commercial general liability insurance are bodily injury, property damage, personal, medical payments and advertising injury liability, tenant legal liability, medical payments, etc. It was in 1986 when we first heard about policy that replaced the general liability policy
Who are the people who get protection under commercial general liability insurance? Well, the insurance not only covers you, but also other people involved in your business.
If you are into a partnership, then your partners and other members too, get protection. If it is a corporate, then the policy covers all the business’s executive officers, directors and stockholders. The liability coverage will even extend to the any subsidiary where one is holding own at least 50 % of the stock. The employees of the business or company too get protection under the policy.
Whenever you run a new business, the first 90 days get automatically covered by this policy. However, after that period, it is your responsibility to get sufficient protection and may need to buy extra cover. Sometimes it gets difficult as to understand precisely how much cover you need. Get guidance from an expert.