Who needs Commercial General Liability insurance?
No matter how small or large your business is, chances are that you will need a standard Commercial General Liability (CGL) policy in order to protect your company from liability risks and loss. Accidents can happen in seconds, but the damages to your business can last much longer.
General Liability insurance protects you from the common risks that can occur during the day-to-day operations of your business. CGL will protect you if your business is found legally liable for third-party property damage or bodily injury as a result of your products, premises or operations. In addition, most CGL policies provide coverage for reputational liability if your business is found liable for personal or advertising damages related to libel or slander. CGL is often offered as a package policy with other coverages like Commercial Property, Crime and Commercial Auto.
What does Commercial General Liability provide coverage for?
- Accidental injuries to customers, vendors or visitors that happen at your business location (Commonly referred to as Premises Liability)
- Property damage or injuries that occur on someone else’s property while an employee is delivering goods or services to a customer (Commonly referred to as Completed Operations)
- Claims of bodily injury or property damage to a customer arising out of the use of your products (Commonly referred to as Product Liability)
- Personal and advertising damages including claims of libel, slander or defamation (Commonly referred to as Personal and Advertising Injury Liability)
Examples of Commercial General Liability claims
- A customer is walking up the steps to your store. There was heavy rainfall overnight and your employee forgot to put a sign outside to warn of the slippery steps. The customer slips and falls on your stairs. They file a lawsuit against your business for the injuries that were caused in the accident.
- A customer is injured as a result of a defect in one of the products that they bought from your business. The customer sues you for the injuries sustained due to your faulty product. The Product Liability coverage included in your CGL policy may not be enough to cover all of your business operations, so it best to discuss this with your broker who can suggest additional coverage if necessary.
- Your employee is completing a painting job offsite and spills paint on your client’s floor during the process. Your painting company is held liable for the damages to your client’s floor.
What does Commercial General Liability NOT provide coverage for?
- Professional services, consulting or advice (Errors & Omissions/ Professional Liability Insurance)
- Cyber attacks and data breaches (Cyber Insurance)
- Property Insurance
- Lost business revenue (Business Interruption)
- Equipment Breakdown
- Businesses that serve liquor (Host Liquor Liability)
- If you or your employees use your vehicles for business purposes OR if you own a fleet of vehicles used by your business (Commercial Auto)
How is Commercial General Liability calculated?
The cost of liability insurance for your business will vary based on a number of factors including:
- The industry your business operates in
- The current value and operations of your business
- What risks are involved in your business
- The types of products you sell or services you provide
- Your business location
- The size of your business
CGL is an important coverage that all businesses should have, but in order to protect all the risks your company may encounter, it should be combined with other business coverages as well. We recommend reaching out to one of the expert brokers at Fuse Insurance who will be able to find the insurance package that is right for your business based on your unique needs and practices. To get started on your online quote now, click here or call us at 1-866-387-FUSE (3873) for more details.