Commercial General Liability
A Commercial General Liability policy is probably the most single important coverage for any business (from a sole ownership operation to a multi-national operation). Operating a business without Commercial General Liability coverage could have a devastating impact on your business and your personal assets in the event you are sued by a third party because they have been hurt or because there has been damage to any of their property.
A CGL policy provides coverage for a business against the financial consequences of their legal liability for bodily injury to anyone and damage to anyone’s property arising from their business activities or operations.
As an example, Bodily Injury claims can arise from something as simple as a slip and fall on your premises. As a business owner you are liable for any injuries suffered by anyone visiting your place of business, whether they have slipped on your property from an icy sidewalk or uneven flooring or have been injured by one of your employees.
Property Damage can arise from poor workmanship on the part of your employees or processes; for example, electrical wiring improperly installed which resulted in a fire at a customer’s location or while doing repairs at a customer’s location, while welding a spark ignites a fire resulting in a damaging fire to the building.
Commercial General Liability also typically provides coverages for expense stemming from allegations of bodily injury or property damage including:
- Amount the insurer spends to investigate or defend the claim or suit brought against you
- Other costs incurred directly by the insurance company, such as lawyer fees, witness fees, police report costs
- Any court costs or other costs assessed against you in a suit
- Reasonable expenses you incur at the insurance company's request to aid in your defence against a claim, such as your loss of income for a day spent in court
- Medical expenses for injured parties