In a business, purchasing an insurance policy is necessary. However, have we all looked and read what are stated in each policy that we purchase? CGL is just one of the most common forms of insurance product that every business owner is purchasing. Have you come to question what a CGL insurance is and what are its coverage? Below are a few of the helpful information about CGL.
A CGL or commercial general liability is an insurance coverage that has the ability to protect your business in cases when you are sued. Generally, CGL is used to cover any claims against your business for any injury or property damage life if one client is injured in your business premises or if one of your employees causes damage to a client’s site.
If you run your business without a CGL insurance policy, you are like leaving you and your business at risk to lawsuits that will surely have impact to your business operation. Since lawsuits are more common everybody thinks, it made the common general liability the most popular business insurance product to every business owners.
CGL Coverage
Under the standard Commercial General Liability or CGL policy, there are four main types of coverage including the bodily injury and property, damage liability, personal injury liability, medical payments, and the tenant’s legal liability intended to those who rented their workspace.
Bodily Injury and property damage liability will be in use when your company, products, employees or anything and anyone connected to your company causes damage or physical injury to a person, property or belonging of your client and was held responsible for the said event. This type of coverage will then be the one to cover or pay the compensatory damages. However, one must note that there are also some incidents not covered by bodily injury and property damage liability and this include those punitive damages or an incident where you are ordered to pay money as a form of punishment. Another excluded incident is an intentional injuries or damage, injuries or damage committed from the use of your commercial automobile, injuries to employees or damage to their property, and damage to property you own.
A personal injury liability on the other hand is used when a damage occur as a result of libel or slander. One must keep in mind that CGL is a liability policy that covers the company when sued or accused of libel or slander. Situations not included by personal injury liability include a statement that is known to be false and damages caused by illegal offences.
Medical Payments is another type of CGL coverage that covers a person’s minor medical expenses caused by an accident at your premises or due to your company’s operations even if you are not held liable as prevention from being sued.
Tenant’s Legal Liability will be the one to cover to put back the property of your rented place or office in-case you are held legally responsible for the cause of the property’s damage.
Now that you know what a CGL is, keep your business safe from lawsuits by purchasing one.