We have many clients that come to us asking for commercial general liability coverage because they are required to have it. Yet, many business owners don’t know what the CGL insurance policy really covers.
There are 3 major components to a CGL policy. Coverage A, Coverage B, and Coverage C.
Coverage A: Bodily Injury and Property Damage. This coverage provides protection against losses from the legal liability of insureds for bodily injury or property damage to others arising out of negligent acts or for liability arising out of their premises or business operations. As an example, say a customer visits your Clifton Park store and slips on a wet floor and is injured.
Coverage B: Personal and Advertising Injury. This coverage protects against liability arising out of certain offenses, such as Libel, Slander, False Arrest, Copyright Infringement, Malicious Prosecution, Advertising Infringement, and Wrongful Eviction.
Coverage C: Medical Payments. This limited coverage includes payments for injuries sustained by a non-employee caused by an accident that takes place on the insured’s premises. It provides for prompt settlement of small medical claims promptly because it can be triggered without legal action. It can pay for all necessary and reasonable medical, hospital, ambulance, and surgical expenses for the person injured in an accident at the insured’s premises.
A commercial general liability policy also covers the cost of the insured’s legal defense as well as paying up to the limit of the policy for damages you are found liable for.
Please excuse the pun, but a business owner going without a CGL policy is risky business. A lawsuit can wipe out a business without CGL coverage, and these liability suits seem to be happening more frequently.