Understanding Commercial General Liability Insurance: What it Covers and Why Your Business Needs It
Commercial general liability insurance, commonly known as CGL, is a type of insurance policy that provides coverage to businesses for bodily injury, property damage, and personal injury claims that arise from their operations, products, or services. This type of insurance is essential for protecting your business from the financial consequences of a lawsuit or claim.
Let's take a closer look at what commercial general liability covers:
CGL provides coverage for bodily injury claims made against your business. This includes injuries that occur on your business premises, such as slip and fall accidents, as well as injuries that occur as a result of your products or services. For example, if a customer is injured while using a product you sell or a service you provide, your CGL policy will cover the costs of their medical treatment.
CGL also provides coverage for property damage claims made against your business. This includes damage to someone else's property that is caused by your operations, products, or services. For example, if your business accidentally damages a customer's car while it is parked in your lot, your CGL policy will cover the cost of the damages.
CGL provides coverage for personal injury claims made against your business. This includes claims for libel, slander, or defamation of character. If someone claims that your business made false statements that harmed their reputation, your CGL policy will cover the legal costs of defending against the claim.
CGL also provides coverage for advertising injury claims made against your business. This includes claims for copyright infringement, trademark infringement, or other types of intellectual property infringement. If your business uses someone else's copyrighted material or trademark without permission, your CGL policy will cover the legal costs of defending against the claim.
Finally, CGL policies may include coverage for medical payments. This provides coverage for medical expenses incurred by someone who is injured on your business premises, regardless of who was at fault. This coverage is typically limited to a specific dollar amount and is intended to cover minor injuries that do not require a lawsuit.
In conclusion, commercial general liability insurance is an essential protection for businesses of all sizes. It provides coverage for bodily injury, property damage, personal injury, advertising injury, and medical payments. If you own a business, it's important to understand what your policy covers and to make sure you have adequate coverage to protect your business from financial losses due to lawsuits or claims.