Owning a business comes with various complexities, so to protect the interest of its owners, several insurance policies exist. One such insurance policy is general liability insurance.
What Is Commercial General Liability? (CGL)
An insurance policy that entrusts coverage for personal injury, property damage during business operations, bodily injuries, or any injury that occurs when present in the premises is called general liability insurance. It is known as comprehensive insurance for business owners though it does not cover all the risks.
Types of Commercial General Liability:
There are two types of policies under general liabilities. These are:
- Claims-made policies: These categories of policies cover claims without considering the time of the event.
- Occurrence policy: In this, the event occurs within a set period.
One can state any individual or company they are in contract with, under the policy as additionally insured.
Example to understand the requirement of Commercial General Liability (CGL)
Some situations which will require a business to have a cover of liability:
- An individual enters your business premises where the job of cleaning and polishing was recent. This polishing causes the customer to slip and break his arm.
- You may own an electrical company and may provide services by going to the customer’s house. One of the employees completing wiring installation starts a fire in the customer’s home.
- A lawsuit against an advertisement you place claiming slander.
These are some of the many situations in which a cover for liabilities may come in handy. Now, we know when the insurance cover can make an appearance but let us understand how it helps us during the above situations.
How Does a Liability Insurance Shield You?
General liability insurance guards your company in various ways:
Coverage for injuries and damage to property: It covers all legal obligations of yours that occur due to an accident. It covers the lawsuit’s costs and the proceedings. The insurance provides sufficient to take care of the injured person, his loss of earnings, and any other damages.
Coverage for losses due to advertising and personal injury: It covers the legal operations that categorize as an offence. Insurance covers the proceeding, the lawsuits bills, and any damages or loss of earnings.
Medical Payments: It helps you pay the medical bills of the person who took a hit on the company premises or due to your operations.