Commercial General Liability Insurance

The Commercial General Liability insurance protects businesses against third-party claims. It includes three separate coverages:

• Coverage A - Bodily Injury and Property Damage : Covers for legal liability to pay damages because of bodily injury or property damages caused to any third-party either at business premises - owned/rented or out of premises or due to your business operation.
• Coverage includes all bodily injury and property damage arising out of your product. Product Liability Insurance will cover for such compensation arising out of use or consumption of a faulty product.
• Any damages because of personal and advertising injury caused by your business.
• The policy also pays for medical expenses for injuries to third-parties caused by an accident in your business premises or when exposed to your business operations.

Businesses having a General Liability Insurance can create great value beyond just protection against liability risks.

Demonstrates responsibility

If you are having a General Liability insurance, you are communicating to customers that you're willing to assume responsibility. Not only does it demonstrate that you want to protect your business, but also that you have your customers best interests in mind.

Increases business opportunities

Clients typically don't want to be liable for your mistakes. Customers often consider this insurance policy a prerequisite for working with businesses. So having this insurance ensures a higher chances of signing new contracts and winning new business.

Let us understand this with a few examples:

Third-Party Bodily Injury

• It's a busy evening in a restaurant and one of the employee is rushing to deliver a piping hot dish.
• While setting down the meal, the employee tripped and accidentally dropped the tray upon one of the customer.
• The injured customer is rushed to the hospital for third degree burns.

While it was the employees fault, however ultimately the restaurant was held liable for this injury and also asked to compensate for the medical expenses.

This is an example of a business causing accidental bodily injury to a customer (third party). Having a CGL policy will help you pay your financial losses.

Third-Party Property Damage

An accident triggered in a manufacturing company causes damage to an adjacent property. The owner of the property files a lawsuit on the manufacturing company for a property damage claim that gets picked under the CGL policy.

All businesses need to protect from third parties for bodily injury and property damage law suits.

• Businesses manufacturing or distributing products will need this insurance as a top priority.
• If you have your employees work or visit your customer locations, you will need this insurance.
• You own a business where there is regular customer walk in, CGL policy will help you cover the risks of lawsuits from customers.
• You are a professional services company and sign contracts with your clients. Your clients will mandate you to have this insurance.

• Expected or Intended Injury.
• Contractual Liability
• Employment Liability
• Property owned by the insured (business purchasing the policy)
• Product recall expenses
• Product guarantee
• Professional liability
• Directors or officers liability

Commercial General Liability insurance provides cover for payments, medical expenses and damages including:

• Legal liability expenses including claimant's costs, fees and Defense costs.
• Damage costs – monetary sums pursuant to judgments or awards and settlements

• Coverage will be restricted by policy terms and conditions, and limited within a certain maximum limit of coverage per event or occurrence (AOA)The limit varies depending on the company's revenues, business, and exposure type.
• The policy limit is an "annual aggregate" (AOY) meaning that there is only one single limit for all the claims during one policy year.
• Defence and other costs are part of this single limit

For different businesses, the cost of CGL insurance policy would be different. It depends on various factors, including their coverage requirements, risk exposures, and which insurance company they are buying the policy from.