Shield Insurance Blog | Commercial General Liability Insurance | Contact Comercial Specialist TJ Simmons

Commercial general liability insurance (CGL) is a crucial component of any business’s risk management strategy. It provides coverage for a wide range of liabilities that a business may face, protecting it from financial losses due to lawsuits and claims. In this blog post, we will explore what is covered by a commercial general liability insurance policy and why it is essential for businesses of all sizes.

Understanding Commercial General Liability (CGL)

Commercial general liability insurance, also known as CGL, is a type of insurance policy that provides coverage for third-party claims against a business for bodily injury, property damage, personal and advertising injury, and medical payments. It is designed to protect businesses from financial losses resulting from lawsuits and claims filed by customers, clients, or other third parties.

Understanding the Special Considerations

When purchasing commercial general liability insurance, there are several special considerations that businesses need to keep in mind. These considerations include the type of business, the industry it operates in, the size of the business, and the specific risks it faces. It is crucial to work with an experienced insurance agent who can help assess the unique needs of the business and tailor the insurance policy accordingly.

Here are some Examples of Commercial General Liability

Commercial general liability insurance covers a wide range of liabilities that businesses may face. Some examples of situations where CGL insurance would provide coverage include:

A customer slips and falls in a retail store, resulting in injuries. CGL insurance would cover the medical expenses and any legal costs associated with the claim.
A contractor accidentally damages a client’s property while working on a construction project. CGL insurance would cover the cost of repairing or replacing the damaged property.
A business is accused of copyright infringement in its advertising materials. CGL insurance would cover the legal costs associated with defending against the claim.

How Much Does Commercial General Liability Insurance Cost?

The cost of commercial general liability insurance varies depending on several factors, including the size of the business, the industry it operates in, the location, and the coverage limits. It is essential to work with an insurance agent who can provide a customized quote based on the specific needs of the business.

What Is Not Covered Under Commercial General Liability Insurance?

While commercial general liability insurance provides broad coverage, there are certain exclusions that businesses need to be aware of. Some common exclusions include:

Professional liability: CGL insurance does not cover claims arising from professional services or advice provided by the business. For this, businesses may need to consider professional liability insurance.
Employee injuries: CGL insurance does not cover injuries to employees. Businesses are required to have workers’ compensation insurance to cover employee injuries.

What is Coverage A: Bodily Injury and Property Damage Liability

Coverage A of a commercial general liability insurance policy provides protection against claims for bodily injury and property damage caused by the business’s operations, products, or premises. It covers medical expenses, legal costs, and damages awarded to the injured party.

What is Coverage B: Personal and Advertising Injury

Coverage B of a commercial general liability insurance policy provides protection against claims for personal and advertising injury. This includes claims for libel, slander, defamation, copyright infringement, and false advertising. It covers legal costs and damages awarded to the injured party.

What is Coverage C: Medical Payments

Coverage C of a commercial general liability insurance policy provides coverage for medical expenses incurred by a third party due to an accident on the business’s premises or as a result of the business’s operations. It covers medical expenses regardless of fault and can help prevent small claims from escalating into larger lawsuits.

What are the guidelines for Purchasing commercial general liability insurance?

When purchasing commercial general liability insurance, businesses should consider the following guidelines:

Assess the risks: Identify the specific risks that the business faces and determine the appropriate coverage limits.
Work with an experienced agent: Find an insurance agent who specializes in commercial insurance and can help assess the unique needs of the business.
Compare quotes: Obtain quotes from multiple insurance companies to ensure that the business is getting the best coverage at the most competitive price.

What Additional liability coverages should be considered

In addition to commercial general liability insurance, businesses may need to consider additional liability coverages depending on their specific needs. Some common additional liability coverages include:

Directors and Officers liability: Provides coverage for claims against directors and officers for alleged wrongful acts in the performance of their duties.
Liquor liability: Provides coverage for claims arising from the sale or service of alcoholic beverages.
Pollution liability: Provides coverage for claims arising from pollution or environmental damage caused by the business’s operations.

Shield Insurance Agency represents over 40 insurance companies

At Shield Insurance Agency, we understand the importance of having the right insurance coverage for your business. As an independent insurance agency, we represent over 40 insurance companies, allowing us to find the best coverage at the most competitive price. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.