Commercial General Liability insurance will protect you against uncertainty and will cover liability claims against your business if you are ever held liable for third party damage, injuries, or death caused by your operations. Without a proper CGL insurance plan in place, you put your company at serious risk that could lead to heavy financial losses.
There are four main types of coverage in CGL policies which include:
- Bodily injury & Property Damage Liability
- Personal Injury
- Medical Payments
- Tenants Legal Liability
Bodily Injury & Property Damage Liability
If your organization, employees, products and/or services are held responsible for causing property damage or physical injury, this coverage may protect you against the loss of legal liability. If found legally responsible, your organization may have to pay compensatory damages to the third party who was injured or experienced a loss. This policy is designed to help pay for these damages.
Personal Injury Liability
This coverage responds to the injury of the reputation of one’s character, position, and/ or image within their community. These are essentially the negative affects causing emotional pain and suffering on a person which may be caused by verbal defamation, written defamation, false arrest, malicious prosecution, and other related actions which may result in harm to one’s reputation. This policy is designed to protect you should you be accused of something untrue and harmful to your character.
Medical payments policy covers the medical expenses of a third party should they be accidentally injured while on your business property or as a result of your company’s operations. This coverage may be used to mitigate the event of a lawsuit.
Tenants’ Legal Liability
If you, the tenant, were to cause damage on a landlord’s property this policy could legally cover damages. For example, if equipment you were using exploded and caused damage in a rented business unit, this portion of the policy would compensate the landlord for damages on their property.