What Can CGL Insurance Cover?

What Can CGL Insurance Cover

CGL insurance protects against usual business risks, like:

Bodily Injury To Others: This part covers costs for medical care and legal fees if someone gets hurt, sick, or even dies because of your business. For example, if a customer gets hurt after falling in your store.

Property Damage To Others: This protects against harm done to someone else’s property. For instance, if a contractor accidentally damages a nearby building while working.

Products Liability: This covers legal responsibility for any injuries or property damage caused by faulty products sold or made by a business.

• For instance, if patrons experience food poisoning after dining at a restaurant, this coverage would protect the establishment.

Completed Operations: This refers to work that has been finished according to contractual requirements, completed work at one location within a multi-site contract, or work that has been implemented for its intended purpose.

• Consider a scenario where a plumber completes a toilet installation, but subsequent leakage causes water damage to the room underneath.

Tenant Legal Liability: This coverage applies when tenants assume responsibility for damages they might cause to their rented or leased premises.

• Picture a situation where an employee at an asset management firm accidentally leaves a candle burning overnight, resulting in a fire that destroys the entire office building.

How Much Does Commercial General Liability Insurance Cost?

The pricing structure for commercial general liability coverage varies significantly based on multiple considerations, including:

• Industry-specific risk levels
• Business scale (considering both annual revenue and workforce size)
• Required coverage limits for CGL insurance
• Previous claims history and additional factors

To illustrate, while a small home-operated business might face annual premiums in the hundreds of dollars, larger enterprises in high-risk sectors could encounter yearly costs reaching several thousand dollars.

For accurate pricing specific to your business needs, consulting with an insurance broker like ALIGNED Insurance is highly recommended.

What is the Difference Between CGL and Professional Liability Insurance?

Commercial General Liability and Professional Liability insurance serve distinct protective purposes. CGL insurance offers coverage against third-party claims involving bodily injury, property damage, and advertising injury. This broad protection encompasses typical business operational risks, such as customer injuries from workplace accidents.

In contrast, Professional Liability insurance specifically safeguards against claims related to professional service delivery, including allegations of negligence, errors, or service failures. This coverage, also referred to as Errors and Omissions (E&O) insurance, is particularly crucial for businesses providing professional advice or services. It covers legal expenses and potential settlements arising from professional misconduct claims.

Other Business Coverage Options to Consider

While commercial general liability insurance provides essential protection against bodily injury, personal injury, and advertising injury claims, businesses should evaluate several additional insurance coverage options to ensure comprehensive protection.

Directors & Officers Liability Insurance: Safeguards personal assets of corporate leadership when faced with litigation regarding their management decisions and company oversight.

Commercial Property Insurance: Delivers comprehensive protection for business premises, equipment, and stock against various perils including theft, fire damage, and natural calamities.

Equipment Breakdown Insurance: Ensures financial coverage for unexpected mechanical or electrical failures of critical business equipment, excluding normal deterioration.

Commercial Auto Insurance: Extends protection to business-operated vehicles, encompassing both physical damage coverage and liability protection for accident-related incidents.

Cyber Insurance: Provides essential financial protection against digital threats, including network security breaches, ransomware attacks, and data compromise incidents.

Partner With ALIGNED Insurance for Tailored Business Coverage

At ALIGNED Insurance, our expert brokers stand ready to assist in securing the precise coverage your business requires for comprehensive risk protection.

Our partnerships with numerous insurance carriers enable us to source customized policies that perfectly match your business needs while remaining cost-effective.