What Is General Liability Insurance?
Commercial general liability (CGL) insurance coverage is for third-parties who suffer a loss involving bodily injury or property damage arising out of a business’s operations or premises. Typically, covered losses must be unintentional, as damage caused intentionally is not covered in most liability insurance policies.
A CGL policy protects a business if they are sued for the following:
- Bodily injury
- Claims for bodily injury, pain, suffering and medical cost cause by your business operations, including negligence
- Personal and advertising injury
- Claims related to libel, slander, and various other offenses
- Property damage caused by the business’s operations or products
- Claims for physical loss, destruction or damage to tangible property cause by your business operations
- Injuries that occur on the business’s premises (but not to an employee – that would be covered by Worker’s Compensation).
- Completed work
- Claims arising out of work not properly done
- Lawsuits/legal cost
- Covers the cost we incur to defend you and your reasonable expenses incurred to defend a claim against your business
Why Do Businesses Need General Liability?
Whatever business you have, as the owner, you have a duty of care to prevent harm or damage to the people and property you or your employees may come in contact with during the course of business, either on or off premises.
Whether it’s a slip or trip that causes an injury, a faulty product that damages property, or an unintentional action of you or your employees, you need to be on guard against these types of accidents. Ideally, you want to prevent them, but sometimes the people and circumstances are simply out of your control. The incident might not be your fault, but it could still cost your business if you don’t have the right coverage.
General liability coverage is also important if you work with other businesses, vendors, or individuals. They may not want to work with a business that doesn’t have proof of insurance coverage. This may also be true for landlords, lenders, or property owners who require proof of coverage on premises or property you rent or lease.
Do I Need an Additional Umbrella Policy?
Since lawsuits are often more expensive than an aggregate cap in a general liability policy, many business owners take out an additional umbrella policy to cover the gaps in their general liability policy.
The cost of an additional umbrella policy will vary depending on the scope of covered claims. If you’re not sure what you need, we’re happy to help! Call us and talk with an ISU agent to review your policy and better understand what’s covered, the limits of that coverage, and what additional umbrella policies you might need based on the specific nature of your business.
Call 916-773-3800 to speak with one of our knowledgeable ISU representatives today!