Transcript
As a business owner, you want to make sure that your business is well-protected with the right insurance coverage. That's why it's important to understand the basics of Commercial General Liability (CGL) insurance.
CGL provides protection for claims of bodily injury, property damage and more. Let’s dive into the five basic coverages included in CGL.
Bodily Injury Liability Insurance - This coverage helps protect you if someone is injured on your property or if you are responsible for an accident that caused physical injury. It covers medical bills, lost wages and other expenses that may occur as a result of the accident. This coverage can also extend to any lawyers’ fees associated with defending yourself against any lawsuit related to the injury.
Property Damage Liability Insurance- This coverage helps protect your business if someone else’s property is damaged due to something your business did or neglected to do. This type of coverage will help pay for any repairs or replacement costs associated with the damage, as well as any legal fees incurred should you be taken to court for damages.
Completed Operations Liability Insurance- This type of coverage helps protect your business from any liability associated with services completed by your company after the job has been finished; such as faulty workmanship causing accidental damage or personal injury. It covers both defense costs and damages awarded should there be a successful claim filed against you for negligence in performing services completed after delivery/acceptance of goods/services were accepted by your customer.
Product Liability Coverage- Product liability insurance protects businesses from claims related to products they manufacture and sell that cause bodily injury or property damage due to a defect in design, manufacturing process, or warning labels. It can also provide protection if an illness results from using a product made by your company. Product liability insurance can also provide defense costs and award damages if needed in order to defend yourself against claims of negligence when it comes to selling/manufacturing/distributing products as part of normal operations within your business.
Personal Injury/Advertising Injury Coverage- Personal Injury/Advertising Injury Coverage provides protection against claims arising out of libel, slander, copyright infringement and other similar offenses that may arise from advertising practices used by your company when marketing its services or products. This type of coverage will help cover legal defense costs and awards should there be a successful claim filed against you for these types of offenses.
A Commercial General Liability policy is essential for all businesses because it provides financial protection in case an incident occurs resulting in bodily injury or property damage liability exposure due to something the business did or failed to do during its operations. By understanding the five basic coverages included in CGL—bodily injury liability insurance, property damage liability insurance, completed operations liability insurance, product liability coverage and personal injury/advertising injury coverage—you can make sure you have the right level of protection for your business needs!
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