What is Commercial General Liability (CGL)Commercial General Liability (CGL) is a type of insurance policy that covers a business for bodily injury, personal injury, and property damage caused by business operations, products, or injuries on the business premises. Business liability insurance is considered public liability insurance, but it does not cover all the risks to which a company may be exposed.
THE CENTRAL THESES
– Commercial general liability (CGL) insurance is a form of comprehensive insurance that provides coverage for damage or injury caused by a company's operations or products or on its premises.
– There are two types of CGL policies: indemnity insurance, which covers losses regardless of when the event occurred, and indemnity insurance, which requires the event to occur during a specific time period.
– Businesses can add other companies or individuals they have contracted with as additional insureds on their commercial general liability policy.
Understand commercial general liability (CGL)
Commercial liability policies have varying levels of coverage. A policy may include premises insurance, which protects the company from claims that occur during regular business operations at the company's physical location. It may also include coverage for bodily injury and property damage resulting from a finished product or service at another location.
Liability insurance may be required to cover damages that exceed the limit of the CGL policy. Some commercial liability policies may contain exclusions from covered actions. For example, a policy may not cover costs associated with a product recall.
When purchasing public liability insurance, it is important for the company to distinguish between property and casualty insurance. An indemnity insurance policy provides coverage for all instances where a claim is made, regardless of when the loss event occurred. An indemnity insurance policy is different in that it covers claims where the loss event occurred during the policy period, even if the policy has now expired.
In addition to commercial liability policies, companies can also purchase policies that cover other business risks. For example, the company may purchase employment practices liability insurance to protect against claims related to sexual harassment, wrongful termination and discrimination. It may also purchase insurance to cover errors and omissions in financial reports and damages resulting from the actions of its directors and officers.
Special considerations
Depending on business needs, a company may need to name other companies or individuals as "additional insured" under its commercial liability policy. This is common when companies enter into a contract with another company. For example, if an auto repair shop with ABC Co. Enters into a contract to provide cleaning services for its facility, ABC Co. May be. Require the garage owners to provide ABC Co. Add as "additional insured" to their commercial liability policy.
Commercial General Liability (CGL) Example
Some examples that would require CGL are as follows:
– A customer enters your store where the floors have recently been cleaned and polished and are therefore very slippery. The customer slips on the floor. Break your leg.