What Is Covered in a Commercial General Liability Insurance Policy?

Investing in robust commercial general liability insurance is essential for any business seeking to avoid financial losses due to costly lawsuits. This policy may provide financial aid following an accident, injury or other liability-related incident.

What is Commercial General Liability?

Commercial general liability (CGL) insurance is a policy that may protect businesses from financial losses from certain lawsuits and claims.

Also known as business liability insurance, CGL may cover claims of bodily injury, property damage and other liabilities that occur during regular business activities. Without this coverage, businesses would have to pay out of pocket for legal expenses, medical bills and damages.

What Does Commercial General Liability Cover?

Commercial general liability insurance may cover various claims that occur during the course of business, including the following:

• Bodily injury may cover medical expenses and legal fees associated with a third-party injury caused by the insured business.

• Property damage may pay for the damage a business caused to someone else’s property. For instance, if an employee accidentally damages a client’s equipment while onsite, the policy may help cover the costs.

• Reputational harm may cover claims of reputational harm, such as libel or slander. This policy may help cover legal defense costs and any settlements or judgments.

• Advertising injury may pay for legal costs related to claims of copyright infringement, misappropriation of advertising ideas or other advertising-related offenses.

Are There Any Exclusions?

Although general liability insurance policies offer extensive protection, they also have limitations. The following are some exclusions that are typically not covered by general liability insurance:

• Acts committed outside the policy period

• Criminal acts

• Lawsuits related to professional errors or omissions

• Employee injuries

• Legal action over hiring or firing practices

• Business property damage

• Accidents involving employee or company-owned vehicles

• Claims beyond your policy limits

Find Out More

Legacy Insurance can help you get the best possible general liability insurance rates without compromising your coverage. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.