Comprehensive General Liability (CGL) insurance is a broad type of insurance policy that offers liability coverage to businesses for bodily injury, personal injury, and property damage caused by the business’s operations, products, or injuries that occur on the business’s premises. This insurance is vital for protecting businesses against the potentially devastating costs of litigation due to accidents.
Key Features
Broad Coverage: CGL policies generally provide wide-ranging protection against the risks of liabilities imposed by lawsuits and similar claims.
Exclusions: While offering extensive coverage, CGL policies do not cover everything. Typically excluded are damages due to intentional acts, professional errors, or workers’ injuries (covered under workers’ compensation insurance).
Importance of CGL
For any business that interacts physically or could potentially cause harm through its services or products, carrying a Comprehensive General Liability insurance policy is crucial. It guards against claims that could otherwise financially cripple a business.
Example of CGL Application
Suppose a customer slips and falls in a store, causing severe injury. A CGL policy would typically cover the medical costs and any legal fees if the customer sues, assuming no specific exclusions apply.
Further Reads and References
ISO CGL Form - Typical policy forms provided by the Insurance Services Office (ISO) which many insurers base their standard coverage documents on.
U.S. Small Business Administration Guide to Business Insurance - Provides guides on different types of insurance necessary for businesses.
Please consult an insurance expert or read your specific policy details to assure how coverage applications are specific to your scenario.
