In our last post, we answered the question, “What does business insurance cover?”
In today’s post, we will follow up by talking about a specific type of business insurance. We will be answering the question, “What does commercial general liability insurance cover?”
Commercial general liability insurance covers claims related to products, bodily injury, and property damage. If you want to start a business, you’ll need some commercial general liability insurance or CGL. This is one of the most common types of business insurance.
Discussing some of the most common commercial general liability insurance coverages in today’s article will help you understand how much CGL coverage your business needs. You can also get a quick quote for free from our experienced team of commercial insurance agents.
What is Commercial General Liability Insurance?
Commercial general liability (CGL) is the most common coverage for small businesses, especially those with employees, and a required coverage in some states. It also helps cover the cost of employment-related injuries and the cost of property damage to businesses during unplanned outages. For example, California has a pervasive power outage during construction, and motorcycle accidents are common after major earthquakes. CGL helps cover insurance claims arising from these scenarios.
CGL also protects you from claims made against you for product liability — a claim for damages related to a product if it causes injury to an unlucky customer. So, businesses that sell any type of product that may result in injury will definitely need to carry a good general liability insurance policy.
A good CGL policy will also defend the company if it is sued for injuries, or property damage that it caused, or for personal injury or property damage that its employees cause. General liability insurance is an important part of any small business’s risk management strategy because it provides the necessary protection for the business owner, and employees, against lawsuits.
Commercial general liability insurance is an essential business insurance policy for most businesses to have. Without coverage, a business can be sued for just about anything: an employee slips and falls, a customer slips and falls, or a product makes someone sick, an advertisement contains erroneous information etc. A good general liability policy will cover the costs of the lawsuit, including defense costs and settlement amounts.
CGL coverage usually has a specific deductible, and the amount of coverage you have (the maximum cash value of your policy) determined by your policy limits.
When Should Your Business Get General Liability Insurance?
Most small-business owners obtain general liability insurance upon starting their business. Here are a few common scenarios that trigger the purchase of general liability for a business owner. This info should help you decide when it is time to buy general liability insurance coverage for your business.
Professional Licensing Requirements
Applying for a license or professional certification is required for many jobs in the United States. The requirements for a license or certification could include general liability insurance. Applying for a professional license. Real estate agents, dentists, and accountants need to meet minimum insurance requirements.
Signing Larger Contracts
Signing a contract with a larger company. A contractor or landscaper may ask you to sign a contract that requires a CGL policy, for example.
Signing a Lease
Signing a lease for an office or workspace. A tenant may need general liability insurance when signing a lease to ensure that legal liability is covered in case of an accident or injury.
These aren’t all of the reasons that a business owner should consider purchasing general liability coverage however these are a few of the common ones.
In this article, we’ve covered what commercial general liability insurance covers and what it doesn’t cover to help you know what to look for when shopping around for the right policy for your business.
General liability insurance is one of the most important business insurance policies you can have, and it’s something that many small business owners often overlook. If you’re thinking about starting a business or are already in the early stages of running your company, it’s important to read this article. You’ll get an overview of commercial general liability insurance and learn how it can protect your business from unexpected accidents or lawsuits.
Since each state has its own set of laws surrounding business liability insurance, it is generally beneficial to obtain additional insurance coverage in dozens of states rather than getting insurance in only one. Many insurance companies will trade additional coverage for lower premiums.
You can always get a quick quote for free from our experienced team of commercial insurance agents.