What does and doesn’t commercial general liability insurance cover?

Most business owners know that they need some form of commercial general liability insurance to protect their business from potential lawsuits – but what does this type of insurance actually cover? In this blog post, we’ll take a look at what commercial general liability insurance does and doesn’t cover, so you can be better informed when making decisions about your business’s insurance needs.

What is commercial general liability insurance and what does it cover?

Commercial general liability insurance, often referred to as CGL insurance, is a form of commercial insurance policy that covers your business against third-party claims for bodily injury or property damage. These claims could arise from the use of your products or services, and also cover situations where you may have caused physical injuries or property damage.

CGL policy typically covers medical expenses, defence costs, damages awarded in a court ruling, and sometimes even contractual obligations stemming from real estate deals or other commercial contracts. A commercial general liability policy can help protect your business against financial hardship in the event that a third-party claim is made against it. Therefore, commercial general liability insurance provides invaluable security to businesses of all sizes by covering most legal liabilities they might face. It can be tailored to fit specific needs and covers various types of activities and locations including office premises, commercial sites, products delivered by mail or courier services, and more.

Commercial carriers provide coverage for these risks with policies that vary in scope and cost depending on a business’s specific needs. Ultimately, commercial general liability protection is essential for any business wishing to stay safe from financial risk due to risks posed by third parties.

Does commercial general liability insurance cover product liability claims?

Commercial General Liability (CGL) insurance is an important tool for business owners, as it provides financial protection in the event of a lawsuit. While this form of insurance covers many types of claims, product liability claims are not always included.

Product liability claims refer to any legal action taken by a consumer who has been injured as a result of using a product they purchased from a company. To determine whether your CGL policy will cover product liability claims, it’s important to carefully review the terms of the policy and consult your agent or broker.

Most CGL policies exclude product-related risks entirely, but some insurers may offer limited coverage that only applies to certain types of product claims. it’s best to check before signing up for insurance. While CGL might not provide protection against product liability claims, there are other forms of insurance—such as product liability and Errors and Omissions (E&O) insurance—that can provide coverage in this area.

Understanding what type of protection you need is key to avoiding costly litigation in the event of such a claim being made by a consumer. In summary, commercial general liability insurance does not typically provide coverage for product liability claims, and business owners should evaluate additional coverage options if they want to be fully prepared for such risk.

What types of damages are not covered by commercial general liability insurance policies?

When it comes to protecting against damages caused by the negligence of a business, commercial general liability (CGL) insurance can be an invaluable tool. However, CGL policies do have their limitations. Generally speaking, damages that fall into either of the following categories may not be covered by a CGL policy: damages due to criminal negligence or intentional acts; damages arising from contractual obligations; and damages resulting from an employee’s malicious or obscene behavior.

Furthermore, typical CGL policies will not cover damages related to personal injury or property damage caused by the use of hazardous materials, environmental pollution, professional malpractice, product liability claims, libel and slander lawsuits, certain workplace illnesses, and damages arising from punitive legal action.

In short, CGL policies are comprehensive but by no means comprehensive enough to provide blanket protection against all potential damages facing businesses today. For this reason, careful consideration should be taken when selecting what options to include in your commercial general liability insurance policy in order to ensure that your business is adequately protected.

How can you make sure you’re properly protected with the right commercial general liability insurance policy for your business needs?

Purchasing a commercial general liability insurance policy should be viewed as an important investment for your business – but it’s also easy to get lost amongst all the jargon and terminology. To make sure you’re adequately protected, there are a few key areas to consider.

Firstly, make sure you understand the limits of coverage – what types of losses are insured, how much liability is covered, and any other specific exclusions or coverage limitations.

Next, consider who needs to be considered in the policy – which premises, partners or employees will benefit from the terms?

Lastly, ensure you’ve factored in potential risks that can arise if something goes wrong – research what other businesses in similar industries have encountered and make sure those areas of risk are covered. With this approach and the right commercial general liability insurance policy for your business needs, you can be secure in the knowledge that your business is properly protected.

Don’t wait until it’s too late to find out what your policy covers – be proactive!

Many people don’t think twice about their policy until they need to file a claim. This can be a costly mistake. Knowing your policy covers in advance, and understanding any limits and exclusions within the policy, will help you address potential risks before it is too late. Furthermore, if you’re not sure about policy coverage, make sure to consult with your insurer – they will be able to explain what is or isn’t covered under your policy.

Even if there is something that you think should be covered by your policy but isn’t currently included, you may be able to work with your insurer to find an appropriate solution that works for everyone.

So don’t wait until it’s too late – get proactive now and make sure you know what coverages and exposures your policy offers – upfront! Doing so could potentially save time and money down the road.

At its core, commercial general liability insurance is there to protect your business from potential claims of negligence. This includes third-party injuries and property damage, which can often come as a result of running a business. However, it’s important to note that not all damages are covered by a standard policy. That’s why it’s crucial to work with an experienced broker who can help you find the right policy for your specific needs. Want to make sure you have the best protection in place for your business? Contact us today for more information on commercial general liability insurance policies and what they cover.