What is commercial general liability insurance?


No business is exempted from risks. The very first day you decided to open your own store or start your own company, you might already have dealt with or identified several risk factors.  This is where commercial general liability insurance comes in. You will need this in order to protect your business from probable risks and protect your assets.

Definition of Commercial General Liability Insurance

The Commercial General Liability insurance, also known as CGL, is the most basic from of business insurance. This is the protection you have whenever you or your business will be held responsible for causing damage to a property or injury to a person.

In essence, the Commercial General Liability insurance would be your first option whenever your business is being sued for damages. With this coverage, the insurance can kick in to help pay for liability judgments against your company.

Categories of Commercial General Liability Insurance

The Commercial General Liability insurance has four core categories. These are the Property Damage Liability, Bodily Injury Liability, Personal Injury Liability and Advertising Liability.

  • Property Damage.

    This kind of liability refers to any damaged property or possession of another client or business which you, your staff, your product or service, etc., had caused. In this case, if you will be held responsible, you will be required to pay for the damages.

  • Bodily Injury.

    If your business caused harm in forms of sickness or disease, injury or even death, to another person, the bodily injury liability of CGL will cover most of the finances acquired through medical assistance, loss of services, and compensations granted by the law for deaths caused by the injury. This may be caused by your premises or your product. For example, a customer may trip on a loose piece of flooring and hurt himself. Or a defective product caused severe injuries.

  • Personal Injury Liability.

    In contrast to the bodily injury liability, personal injury liability is a policy that will protect your business at any time it will cause damage that is not physical. This covers complaints related to damages of a person's character, reputation, or image in the community or industry. This kind of liability protects your from libel and slander.

  • Advertising Liability.

    The advertising liability will defend you and your company from any intentional or unintentional advertisement or promotional damage brought about to other person or company. Common cases are copyright and trademark issues, false claims about your competitor or other business, and defamation. For instance, a competitor may file suit if you have damaged their reputation in an advertising campaign.

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