Every business owner is at risk when they open the doors of their new business. Whether the business is small or large, the risk remains the same. The world we live in is one where people are quick to make a claim against another. Therefore, if you own a business you open yourself up to an even greater risk of someone making a claim against you. Whether a claim brought against you is your fault or not, it is important to protect yourself with a basic commercial general liability insurance policy.
The very best way to protect yourself against legal claims is a commercial general liability policy. The CGL is a policy that protects you from claims made against you. It does not protect your personal business property. There is a significant distinction so please don’t be confused. CGL covers you against claims made by others for their own injury that is traced back to your business. With the CGL you are protected not only at your place of business but also at places that you typically conduct business.
While CGL will not cover your personal business property it is often paired with property insurance as a packaged policy. In order to cover your liability, your responsibility to others, you must carry at least a minimum amount of commercial general liability coverage. Things that are typically covered in a CGL are the bodies or property of other people while in your place of business and personal injury as a result of your business. A fourth element of the CGL is protection for copyright infringement and/or slander in the course of advertising your business.
In summary, the following coverages are included in a commercial general liability insurance policy:
1. Bodily Injury 2. Personal Injury 3. Property Damage: Not your own property but the property of the injured party 4. Advertising Injury
A very comforting element of the CGL is legal defense. Most policies cover the cost of defending the policyholder against liability claims. Even if the claim is found to be without merit, defense is covered. This is a major benefit to an insured as the cost to defend even the smallest claim can become astronomical.
The most important aspect of the commercial general liability insurance policy is the financial limits. Please be sure to discuss the levels of coverage with a qualified property & casualty insurance broker to get the most complete information on how best to protect your business.
Most companies need commercial liability insurance to protect against liabilities you face every day. A specialized type of coverage is product liability insurance that offers protection for manufactures and sellers of consumer products.
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