A business insurance package can be a bit overwhelming with all of the extra endorsements, coverages, exclusions, and limits. If you are running a successful business or just starting one, you will need Commercial General Liability or more commonly referred to as CGL insurance package. This may not be an exciting topic for anyone, but it is crucial to know for anyone operating a business. A person will dream of owning and operating their own business one day, and when that day finally comes, it could all be taken away because you didn’t take the time to get to know your insurance coverages. Don’t let it be you, or your business that fails due to misconceptions or not fully understanding the coverages on your businesses insurance package.
What is a CGL Policy?
Commercial General Liability insurance (CGL) is coverage that will protect your business in the event that you are sued or found legally liable. When a customer has an injury or damage has been caused by you or your employees, the last resort for a consumer is to usually sue the company that has caused the damages. This is slowly becoming the normal procedure in today’s society and should not be taken lightly as lawsuits can be for millions of dollars.
There are four main types of coverage included in the standard Commercial General Liability (CGL) policy, all subject to specific policy exclusions:
Bodily Injury and Property Damage Liability
If your company, workmanship, employees, or anything else associated with your company causes physical injury to someone, damages their property, or damages their belongings, you could be held legally responsible. A CGL policy can help mitigate your loss when your business is liable for an injury to a third party whether it be on or off your company’s premises.
Personal Injury Liability
Personal injury sounds a lot like Bodily Injury above, but in the insurance world it is completely different. Personal injury means damage of a person’s character, reputation, or position in the community as a result of libel or slander.
It is very easy to get caught on libel or slander with the technology available today. One employee could write something on your social media accounts and your entire world could be turned upside down. A CGL policy can help mitigate your loss when your business is facing any suits that are a result of libel or slander.
The Medical Payments coverage on a CGL policy is there to pay minor medical expenses from an accident that occurred on your company’s premises. Usually when a company uses their Medical Payments coverage they are trying to avoid a costly lawsuit by providing help for the injured person right away.
Tenants’ Legal Liability
If you rent or lease the current location for your business, there is always a chance that you could be held legally responsible for causing damage to the building. If you are held legally responsible for damages to the building, this coverage will pay the costs of the damages to the building up to the limits on the policy.
Do Trades People Need This Coverage?
As you can see above, there are many ways that a CGL could protect your business from costly occurrences. Trades men and women have a great exposure to any sort of legal liability. They are in people’s homes and properties constantly, and if their work has a flaw, it could cost someone their life. Having a sound understanding of your insurance policy is important, but what is more important is having an insurance professional who not only understands insurance, but also understands what it takes to make it in the trades today. Protect yourself, your family, your employees, and your business by ensuring that you are properly insured from life’s unexpected challenges.