{"id":37,"date":"2019-04-23T14:56:10","date_gmt":"2019-04-23T09:26:10","guid":{"rendered":"https:\/\/www.plancover.com\/insurance\/?p=37"},"modified":"2021-07-07T18:26:27","modified_gmt":"2021-07-07T12:56:27","slug":"commercial-general-liability-insurance-an-essential-for-any-company","status":"publish","type":"post","link":"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/","title":{"rendered":"Commercial General Liability Insurance \u2013 An Essential For Any Company"},"content":{"rendered":"\r\n<p><span style=\"font-size: 14pt;\">Occurrences and accidents can happen unexpectedly. A food delivery boy who came to deliver to your office fell from the stairs; your next door office premises got damaged because of repair work undertaken in your office, or an advertisement you published hurt your competitor\u2019s business. These are all incidents that can leave your company legally liable if the third party files a lawsuit against your company. That is when the Commercial General Liability Insurance (CGL) Insurance can provide some relief to the company.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">CGL is one of the most basic business liability insurance that every company must consider. From the time a company is formed and the business starts operation, it becomes liable. A failure to understand this or the lack of awareness could cost a company, money or even a shutdown.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Whether you are a small manufacturing unit, a stationery store or an individual contractor, if you think you are \u201ctoo small\u201d to the possibilities of legal risks, you might be being ignorant. Here are some key points about CGL Insurance that will change the way you think about your business and insurance needs:<\/span><\/p>\r\n\r\n\r\n\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a1bb346a6a95\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a1bb346a6a95\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/#What_is_CGL_Insurance\" title=\"What is CGL Insurance?\">What is CGL Insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/#What_are_liabilities_for_a_business\" title=\"What are liabilities for a business?\">What are liabilities for a business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/#What_are_the_risks_covered_by_the_CGL_Insurance\" title=\"What are the risks covered by the CGL Insurance?\">What are the risks covered by the CGL Insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/#What_are_the_types_of_lossesexpenses_covered_by_CGL_Insurance\" title=\"What are the types of losses\/expenses covered by CGL Insurance?\">What are the types of losses\/expenses covered by CGL Insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/#Why_should_a_business_have_Commercial_General_Liability_insurance\" title=\"Why should a business have Commercial General Liability insurance?\">Why should a business have Commercial General Liability insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/#What_are_the_claims_that_the_policy_might_not_cover\" title=\"What are the claims that the policy might not cover?\">What are the claims that the policy might not cover?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.plancover.com\/insurance\/commercial-general-liability-insurance-an-essential-for-any-company\/#Why_do_SMEs_need_CGL_policy\" title=\"Why do SMEs need CGL policy?\">Why do SMEs need CGL policy?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_CGL_Insurance\"><\/span><strong>What is CGL Insurance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">CGL is a <a href=\"https:\/\/www.gicofindia.com\/pdf\/gic-seminar-presentation.pdf\">liability insurance<\/a> that covers third party losses only. CGL Insurance provides financial cover against liabilities arising due to bodily injury or property damage to a third party. A third party could be anyone- a vendor, a stranger, a visitor, a person working in the next-door office, a neighboring office premise or a passerby. Damages could be caused by a product or service that a company provides on or off the business site. <\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">The CGL coverage provided by the policy would be related to the expenses such as payment towards the repair of property damage, medical and hospital expenses of an injured person, and claims against psychological damages faced by the third party, among others.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Here\u2019s an <a href=\"https:\/\/www.hughesamys.com\/docs\/default-source\/blawg-documents\/aviva-insurance-company-v-intact-insurance-company-2018onsc238.pdf?sfvrsn=8b696b10_0\">example<\/a>: Recently, a business owner invited his friend for a post-work jam session in his office. His friend fell off a ladder. The visitor sued his friend (the business owner), the company to which the office premises belonged and a third company that owns the building. In this case, the injured made sure that he filed claims against all the parties involved. In a nutshell, every business is liable.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_liabilities_for_a_business\"><\/span><strong>What are liabilities for a business?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Liability in business means a company is responsible for any damages occurring to a third party due to the company\u2019s business activities. As soon as people decide to start a business, they are exposed to a large variety of liability risks. In a number of cases, even though a business might not be at fault, the verdict in a court of law could still be against the business. In such a case, insurance coverage can help ease the burden of losses and expenses that a company might face.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_risks_covered_by_the_CGL_Insurance\"><\/span><strong>What are the <\/strong><strong>risks covered by the CGL Insurance<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">The Commercial General Liability Insurance policy covers both, public and product liability. What does that mean? It means that the insurance covers losses arising due to bodily injury or property damage to a third-party due to:<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<ul>\r\n<li><span style=\"font-size: 14pt;\">A company\u2019s business activity<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">A company\u2019s products or services<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Due to advertising injury<\/span><\/li>\r\n<\/ul>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Medical expenses of the third party, personal or psychological injury to the third party and property damage expense claims are risks that can be covered by the CGL Insurance. \u00a0<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_types_of_lossesexpenses_covered_by_CGL_Insurance\"><\/span><strong>What are the types of losses\/expenses covered by CGL Insurance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Now we know that the Commercial General Liability insurance policy covers liabilities arising due to third party injuries and property damage.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">These are the costs it could cover:<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<ul>\r\n<li><span style=\"font-size: 14pt;\">Medical expenses of the injured<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Legal expenses in case of a lawsuit<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">The lawyers\u2019 fees<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Court-related expenses<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Settlement expenses in case the company loses the lawsuit \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Damage caused by the product or service of a company<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Legal costs of product liability lawsuits<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Expenses arising from advertising injury such as the invasion of privacy<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Reputational injury lawsuit<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Infringement of copyright or trademark<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Slander<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Legal costs<\/span><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_should_a_business_have_Commercial_General_Liability_insurance\"><\/span><strong>Why should a business have Commercial General Liability insurance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">Every business has general \u00a0liabilities and hence it would make sense that all kinds of enterprises &#8211; small businesses, individual contractors, distributors, manufacturers, wholesalers and retailers, and large corporations &#8211; should consider having a business risk insurance such as CGL.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">The industries most susceptible to claims that fall under CGL are manufacturing units, advertising and media firms, companies providing services and products, and businesses that operate out of office premises, among others. Even individual contractors such as architects, business development consultants, and freelance professionals could give themselves a safety cushion in uncertain occurrences with the help of CGL Insurance.<\/span><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_claims_that_the_policy_might_not_cover\"><\/span><strong>What are the claims that the policy might not cover?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<ul>\r\n<li><span style=\"font-size: 14pt;\">In case fines and penalties are charged<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">When a product is recalled by a business<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">If a product or a part of it is repaired or replaced<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">In case of willful or deliberate non-compliance with statutory provisions<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">When there is a copyrights, patents or trademarks infringement<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">In the case of radioactive toxic explosives or other hazardous materials<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">If the claims are made prior to policy inception<\/span><\/li>\r\n<li><span style=\"font-size: 14pt;\">Under the circumstances of war risk and terrorism<\/span><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_do_SMEs_need_CGL_policy\"><\/span><strong>Why do SMEs need CGL policy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><span style=\"font-size: 14pt;\">No matter how large or small a company, businesses have several liabilities. SMEs operate in vigorous and fast-moving market environments. Many business owners assume that they might not need the CGL Insurance or that it is just an unnecessary expense for the company. But what about the liabilities mentioned above? Business owners fail to understand that they are susceptible to risks. <\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">Imagine that your neighboring office premise is damaged because of repair work in your office. Upon inspection, the neighboring office is deemed unfit for occupying it and has to be brought down. Even the smallest of damages can cost your company a fortune.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">In such a scenario, an expensive lawsuit could have severely debilitating effects on the company\u2019s worth. To protect the company from severe losses and expense, it would help if small and mid-sized enterprises purchase a CGL policy.<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">\r\n\r\n<\/span><\/p>\r\n<p><span style=\"font-size: 14pt;\">If you\u2019re looking to purchase a CGL policy for your business, PlanCover would address your queries and concerns, and help you with your business insurance plans. Moreover, PlanCover\u2019s approach of transparency at every stage of the policy\u2019s life cycle ensures that you know what\u2019s happening with your policy. For more details visit our <a href=\"http:\/\/www.plancover.com\/\">website<\/a>.<\/span><\/p>\r\n\r\n\r\n\r\n<p>&nbsp;<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Occurrences and accidents can happen unexpectedly. A food delivery boy who came to deliver to your office fell from the stairs; your next door office premises got damaged because of&#8230;<\/p>\n","protected":false},"author":2,"featured_media":38,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":"","footnotes":""},"categories":[10],"tags":[3],"_links":{"self":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/37"}],"collection":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/comments?post=37"}],"version-history":[{"count":4,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/37\/revisions"}],"predecessor-version":[{"id":918,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/posts\/37\/revisions\/918"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media\/38"}],"wp:attachment":[{"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/media?parent=37"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/categories?post=37"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.plancover.com\/insurance\/wp-json\/wp\/v2\/tags?post=37"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}