A Commercial General Liability (CGL) policy is a fundamental component of business insurance, designed to protect businesses from a variety of risks. Understanding the damages covered under a CGL policy can help business owners manage risks effectively and ensure proper coverage.
Bodily Injury and Property Damage
One of the primary protections offered by a CGL policy is coverage for bodily injury and property damage caused by business operations, products, or services. For example, if a customer slips and falls on your business premises and incurs medical expenses, the CGL policy can cover those costs. Similarly, if your operations accidentally damage someone else's property, the policy can address repair or replacement costs.
Personal and Advertising Injury
Usually, CGL policies cover personal and advertising injuries as well. This covers allegations like slander, libel, defamation, wrongful eviction, or copyright infringement in ads. For example, the coverage might cover any settlements or judgments as well as the legal expenses should a competitor accuse your company of fraudulent advertising damaging their reputation.
Product Liability
Should your company produce, distribute, or market goods, a CGL policy's product liability element offers necessary protection. This covers claims resulting from flaws in goods that either injure or harm property. For instance, the CGL policy can manage the related claims should a defective good cause an injury.
Completed Operations
The coverage of finished operations is absolutely important for service-based companies. It guards against claims of property damage or bodily injury resulting from events following a service. For instance, the CGL policy can cover a claim should a contractor complete a project and subsequent structural damage results from the job.
Exclusions and Limitations
CGL rules do contain some exclusions, though. Generally speaking, for example, damages originating from pollution, deliberate wrongdoing, or professional mistakes are not covered. Companies needing more defense against these hazards could have to buy specific policies such as environmental insurance or professional liability.
Conclusion
Broad protection from many hazards—including bodily injury, property damage, personal and advertising injury, product liability, and completed operations—is offered by a CGL policy. To guarantee that your company is completely covered, knowledge of the constraints and exclusions is vital. See an insurance agent to customize coverage to fit your particular situation for complete risk management.