What Does Commercial General Liability Actually Cover?

Business is inherently risky.  Having the appropriate insurance coverage can help safeguard your business against these risks.

 

A Commercial General Liability (CGL) policy is a standard insurance policy issued to businesses to protect their business against liability claims for bodily injury and property damage. CGL protects your business against the common and the unexpected risks that business owners face.

 

What does CGL cover?

CGL policies protect you from the expense of litigation.  If your company is sued by a third-party, CGL covers the insurance company’s investigation, lawyer fees and any settlement or court-ordered judgement.  The CGL policy may also cover medical expenses and the cost of repairing or replacing the damaged property.

 

CGL covers third-party lawsuits arising from:

  • Bodily injury / accidents that occur on your property;
  • Property damage;
  • Product Liability;
  • Completed Operations.

 

What is not covered by CGL?

CGL typically does not provide coverage for employee injuries. Workers compensation insurance would protect employees that are injured on the job. CGL does not provide coverage for professional mistakes. Professional liability insurance would cover your business against professional mistakes made in providing opinions, services or recommendations in the course of business. Cyber liability insurance is typically not included under a CGL policy but can be added under a separate policy.

 

The cost of CGL depends on several factors such as the industry, company size, years of experience and location. Contact your Insurance Broker today to discuss CGL insurance.

 

Do you have questions on this article or about insurance in general?

Contact Rizk Insurance today and we’ll help answer any inquiries you may have.

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