Comprehensive general liability insurance, often referred to as CGL insurance, is a type of insurance policy that provides coverage for a wide range of liabilities faced by businesses. Here’s a breakdown of what it typically covers:
- Bodily Injury: CGL insurance covers medical expenses, legal fees, and damages if someone is injured on your business premises or as a result of your business operations. This can include slips and falls, accidents, or injuries caused by products or services.
- Property Damage: If your business causes damage to someone else’s property, CGL insurance can help cover the costs of repair or replacement. This includes damage caused by accidents, negligence, or faulty products.
- Personal and Advertising Injury: CGL insurance provides coverage for claims of personal or advertising injury, such as libel, slander, copyright infringement, or invasion of privacy. This protects your business against lawsuits arising from your advertising activities or other communications.
- Legal Defense Costs: CGL insurance typically covers legal defense costs, including attorney fees, court costs, and settlements or judgments resulting from covered claims. This can help protect your business from financial losses associated with defending against lawsuits.
- Additional Coverages: Depending on the policy, CGL insurance may also include additional coverages such as medical payments coverage (for immediate medical expenses regardless of fault), contractual liability coverage (for liabilities assumed under contracts), and liquor liability coverage (for businesses that serve alcohol).
It’s important to note that CGL insurance has limits and exclusions, so it’s essential to review your policy carefully to understand what is covered and any limitations or exclusions that may apply. Additionally, businesses may need to consider additional insurance policies or endorsements to address specific risks not covered by CGL insurance, such as professional liability insurance or cyber liability insurance.
Overall, comprehensive general liability insurance is an essential coverage for businesses of all sizes, providing protection against a wide range of liabilities that could threaten the financial stability of the business.
