Insurance Blog

The moment one has started his or her own small business, the only goal that he or she want to attain is to have the business grow successfully. However, there can really be some times that a certain business success can be affected with some event under our control, and here is where the business insurance will take in place.  Business insurance is an insurance product that is designed to accommodate a small business needs or interest. It also often called as a commercial insurance.

Since designed for small business, each business’ insurance needs still differ from each other. However, there are still series of insurance products that every business needs in common. These insurance products can probably be those that can protect every business from a common risk and these products include:

Commercial property insurance – this is an insurance product that has the ability to provide coverage for the business’ building, contents, stock, and equipment against loss or damage. Aside from the loss because of a certain inevitable incident, this coverage usually is paired up with business interruption coverage, which is on the other hand responsible in compensating for the loss of income incurred while the business is closed.

Comprehensive or commercial general liability (CGL) – this CGL insurance is another business insurance product that is designed to cover the business from any injury or damage to other people. An example of the incident covered by CG is once a client or customer has an injury within the business’ premises or if a company’s employee damages a certain property at the clients’ or customers’ site.

Errors and omissions or the Professional Liability is another insurance product that every business owners commonly need to have. This insurance coverage is important to those who are dealing a business in behalf of their clients. The professional liability insurance will cover anyone dealing with customers on their behalf protecting the person from a customer’s claim of harm or cost of money due to the claimed errors in dealing with the business.

Accounts Receivable Coverage is one of the business insurance products that every small business must have. This product is the one responsible for when business records are destroyed or damage by a covered peril and hinders the company from collecting its collectibles. The collectible amount will then be covered by the accounts receivable coverage and the expense incurred for the reconstruction of records and extra collection fees. One must not though that this coverage does not include the physical value of the record itself, but only the collectible amount.

Crime Coverage and Fidelity bonds are another important insurance product that will help every business owners protects themselves from losses due to crime particularly the crime coverage. Crimes covered include burglary, robbery, or theft. Fidelity bond on the other hand will cover each business owner from theft committed by his or her employees like stealing for some money, equipments, or other assets from him or her also known as first-party fidelity or his or her clients also called as the third-party fidelity.

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.