Commercial General Liability (CGL)
Commercial General Liability (CGL)

Commercial General Liability (CGL)

What Is commercial General Liability ( CGL )

commercial general liability ( CGL ) is a type of policy policy that provides coverage to a commercial enterprise for bodily injury, personal wound, and property wrong caused by the business ’ second operations, products, or injuries that occur on the business ’ s premises. commercial general liability is considered comprehensive examination occupation insurance, though it does not cover all risks a clientele may face .

Key Takeaways

  • Commercial general liability (CGL) is a form of comprehensive insurance that offers coverage in case of damage or injury caused by a business’s operations or products, or on its premises. 
  • There are two types of CGL policies—a claims-made policy that covers claims regardless of when the event took place, and an occurrence policy where the event must take place during a set period. 
  • Companies can add other companies or individuals they contract with to their commercial liability insurance policy as an “additional insured.”

Understanding commercial General Liability ( CGL )

commercial general indebtedness policies have different levels of coverage. A policy may include premises coverage, which protects the business from claims that occur on the business ’ s forcible location during regular business operations. It may besides include coverage for bodily injury and property damage that is the result of a finish product or service done on another placement .

excess indebtedness coverage can be purchased in order to cover claims that exceed the limit of the CGL policy. Some commercial general liability policies may have exclusions to what actions are covered. For example, a policy may not cover the costs associated with a intersection echo .

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When purchasing commercial general liability policy, it is important for the business to differentiate between a claims-made policy and an happening policy. A claims-made policy provides coverage for whenever a claim is made, regardless of when the claim event happened. An occurrence policy is different in that it covers claims where the claim event occurred during the clock time of the policy tied if the policy is now expired .

In summation to commercial general liability policies, businesses may besides purchase policies that provide coverage for other business risks. For exemplar, the occupation may purchase employment practices liability coverage to protect itself from claims associated with intimate harassment, wrongful termination, and discrimination. It may besides purchase indemnity to cover errors and omissions made in fiscal report statements, vitamin a well as coverage for damages, resulting from the actions of its directors and officers .

extra Considerations

Depending on its occupation needs, a company may need to name early companies or persons as “ extra insured ” under their commercial indebtedness policy policy. This is common when businesses enter into a shrink with another entity. For example, if an car haunt garage enters into a narrow with ABC Co. to provide scavenge services for their facility, ABC Co. may require the garage owners to add ABC Co. as “ extra guarantee ” on their commercial general indebtedness coverage .

example of Commercial General Liability ( CGL )

Some examples that would require CGL include the comply :

  • A customer enters your place of business where the floors have recently been cleaned and polished, and as a result are very slippery. The customer slips on the floor and breaks their leg.
  • One of the employees of your electrical company visits a home for an electrical wiring job and accidentally causes a fire in the customer’s home.
  • An advertisement you placed results in an individual claiming libel or slander.
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