{"id":15740,"date":"2022-12-29T03:26:00","date_gmt":"2022-12-29T03:26:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=15740"},"modified":"2023-01-31T14:57:03","modified_gmt":"2023-01-31T14:57:03","slug":"commercial-general-liability-insurance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/business-services\/commercial-general-liability-insurance\/","title":{"rendered":"Commercial General Liability Insurance CGL US: Policy, Coverage and Costs","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

One common question many business owners ask is \u201cwhat is commercial general liability insurance?\u201d Also, they want to know what it’s all about and whether they need it. The truth is, commercial general liability insurance is an important part of an insurance plan.\u00a0This is because it can help cover claims that your business has caused, which may be bodily harm or property damage.\u00a0However, you can get commercial general liability insurance as a customized policy or bundle it with other key coverages. We\u2019re here to help you understand what kind of insurance coverage your business may need. So, whether it\u2019s learning about the meaning of commercial general liability insurance, the cost, coverage, or help\u00a0to get a quote<\/a>, we\u2019re here for you.<\/p>\n\n\n\n

What Is Commercial General Liability (CGL) Insurance?<\/span><\/h2>\n\n\n\n

Commercial General Liability (CGL) policy is a standard insurance policy assigned to business organizations to protect them against liability claims. Hence, the protection for liability claims includes bodily injury (BI) and property damage (PD). These moreover, arise out of premises, operations, products, and concluded operations; and advertising and personal injury (PI) liability.<\/p>\n\n\n\n

The CGL policy was introduced in 1986 and displaced the general liability policy. This insurance is also known as general liability insurance or business liability insurance.<\/p>\n\n\n\n

Read Also: Financial assets: All you need to leverage effectively<\/a><\/strong><\/h5>\n\n\n\n

What Is the Difference Between Commercial General Liability and General Liability?<\/span><\/h3>\n\n\n\n

There isn\u2019t a difference between commercial general liability and general liability insurance as both terms refer to the same insurance.<\/p>\n\n\n\n

Understanding Commercial General Liability (CGL) Policy<\/span><\/h2>\n\n\n\n

Commercial general liability policies have different coverage levels. So, a policy may include premises coverage, which protects the business from disclosures that occur on the business\u2019s physical location on regular business operations. There may also be coverage for personal injury and property damage as a result of products or services made elsewhere.<\/p>\n\n\n\n

Excess liability coverage can be purchased to cover claims that exceed the limit of the CGL policy. However, some commercial general liability policies may discriminate in activities covered. For instance, a policy may not cover the costs associated with a product recall.<\/p>\n\n\n\n

When purchasing commercial general liability insurance, the business needs to distinguish between a claims-made policy and an occurrence policy. A claims-made policy provides coverage for whenever there is a claim, regardless of the time of occurrence. An occurrence policy is different as it covers claims where the claim event occurred during the policy period. It provides coverage even when the policy has expired.<\/p>\n\n\n\n

Additionally, businesses may also purchase policies that provide coverage for other risks to the business. For instance, the business may purchase employment practices liability coverage to protect itself from claims related to sexual harassment, wrongful termination, and discrimination. It may also purchase insurance to cover deficiencies and non-compliance with financial statements, as well as coverage for losses, resulting from the actions of its directors and officers.<\/p>\n\n\n\n

Special Insurance Considerations<\/span><\/h3>\n\n\n\n

Depending on the needs of the company, the company may need to name a company or other person as “additional insured” under a commercial liability insurance policy. This is common when one company enters into a contract with another company. For example, if an automobile repair garage enters into a contract with ABC Co. to provide cleaning services for the facility. ABC Co. may require the garage owner to add ABC Co. as “additional collateral” on their CGL coverage.<\/p>\n\n\n\n

What Does Commercial General Liability Insurance Cover?<\/span><\/h2>\n\n\n\n

Commercial general liability insurance coverage extends to claims that your business caused like:<\/p>\n\n\n\n