General Liability Insurance

Commercial General Liability (CGL) insurance plays a crucial role in protecting your business from financial losses resulting from claims of bodily injury or property damage to others caused by your business activities. It's often considered foundational coverage for most businesses and works like a safety net that catches these unforeseen expenses.

How it works:

Imagine someone slips and falls on your store floor or a customer claims your product caused damage to their property. If found liable, you could face significant legal and financial repercussions. Some of the most common coverages include:

• Bodily injury: Covers medical expenses, lost wages, and other costs associated with bodily injuries sustained by others due to your business activities, on your premises, or by your products. Examples include a customers slipping and falling in your store, employees getting injured due to work-related activities, or a delivery truck accidents causing injuries to others.
• Property damage: If your business activities (including employees, vehicles, or products) damage someone else's property, this covers repair or replacement costs. Examples include: an employee accidentally damaging a client's equipment while on-site, leaky pipe in your office building damaging a neighboring business, or a delivery truck causing damage to another vehicle.
• Personal & Advertising Injury: Covers legal defense costs and damages awarded to others due to non-physical injuries stemming from your business activities, including libel and slander, copyright infringement and wrongful eviction. This typically includes libel or slander, copyright infringement, and advertising injury.
• Products and Completed Operations: Protects against claims alleging injuries or property damage caused by defective products your business manufactures, distributes, or sells. It is essential for businesses that manufacture, distribute, or service products.
• Hired and Non-Owned Auto: Typically covers liability only coverage arising from rented, leased, or employee-owned vehicles used for business purposes.

Who needs it:

Nearly all businesses need CGL insurance, regardless of size or industry. It's crucial for protecting your financial stability against potential lawsuits and claims. Some specific examples include:

• Retail stores: Protects against customer injuries in the store
• Construction companies: Covers property damage caused during construction projects
• Manufacturing: Covers potential injuries or damage caused by your products.
• Hospitality: Slips and falls, foodborne illnesses, or property damage within hotels, restaurants, or other accommodations.
• Service providers: Shields you from claims of negligence resulting in injury or property damage
• Landscaping and Property Maintenance: Working on client property and using equipment increases potential for property damage
• Freelancers and consultants: Protects against potential client lawsuits

Advantages of CGL:

• Peace of mind: Knowing you have financial protection against lawsuits and claims allows you to focus on running your business with confidence.
• Reduces financial risk: CGL prevents potentially devastating financial losses from lawsuits and claims, ensuring business continuity.
• Compliance: Many businesses are legally required to carry CGL insurance, and contracts might require it for working with other companies.
• Broad coverage: CGL offers comprehensive protection against various liability situations, unlike specific insurance policies for individual risks.

Thinks to keep in mind:

• Limits: Each policy has limits on how much it will pay for each claim and total claims per year. Ensure your limits are sufficient to cover potential risks.
• Exclusions: Certain events and situations might be excluded from coverage. Carefully review your policy for a clear understanding.
• Additional coverages: Depending on your industry and specific needs, you might need additional liability coverages like Errors and Omissions or Products and Completed Operations Liability.

By understanding the importance of CGL and seeking professional guidance, you can ensure your business has the financial protection it needs to operate confidently and minimize potential financial losses arising from unforeseen incidents.