Business owners find substantial benefits in securing Commercial General Liability (CGL) insurance, a robust shield against the potential legal and financial ramifications of accidents and liabilities. This all-encompassing policy goes beyond mere protection, extending coverage to defence expenses, legal fees, and settlements associated with various critical areas, including product liability, third-party claims, and premises liability. *
Who Should Invest In CGL Insurance?
Liability insurance is necessary if you’re a sole proprietor, part of a partnership, run a joint venture or own a hotel, hospital, IT company, or BPO. It is crucial for businesses of all sizes, including professionals operating out of offices such as clinics, consulting firms, or home-based enterprises.
Coverage Under CGL Policy
Third-Party Lawsuits: CGL covers physical harm or property damage to third parties on your premises, offering both settlement and legal cost coverage. Claims are subject to terms and conditions set forth under the commercial insurance policy.
- Advertising Industry Damages: Coverage extends to damages related to the advertising industry, including copyright and trademark infringement. *
- Medical Payments: The policy pays for medical expenses if clients or guests sustain injuries on your property. *
- Legal Fees And Assistance: CGL covers legal fees and assists with legal matters.
Liabilities Originating Points
Legal liabilities can stem from actions by clients, guests, or others on your premises. If stakeholders suffer harm or damage, your company may be held liable. Examples include a guest getting injured due to a wet floor in your office or harm caused by a defective product your business sold.
Selecting The Right Coverage
The coverage amount depends on your business turnover, locations, product risks, and potential exposures. It’s crucial to compare offerings from different insurers, considering price, benefits, and coverage before finalising a liability insurance policy.
Exclusions Under CGL
While CGL provides extensive coverage, it has exclusions such as:
- Damage to Insured’s Products and Property: Coverage does not extend to damage to the insured’s products and property.
- Conflict And Dangers: Exclusions for conflicts and dangers.
- Intentional Harm: No coverage for intentional or anticipated harm.
- Professional Negligence: Carelessness on the part of professionals is not covered.
- Actual Liabilities: Actual Liabilities are excluded.
- No Punitive Damages: CGL doesn’t cover punitive damages.
- Product Recall: Exclusion for product recalls.
- Worker’s Compensation: No coverage for worker’s compensation and related statutes.
- Purely Monetary Loss: Exclusion for purely monetary loss.
- Willful Disregard: No coverage for willful disregard for lawful requirements.
Understanding these exclusions is crucial, as they can vary slightly among insurers. Claims related to negligence or subpar services occurring before the policy’s issuance or retroactive date are not covered. Separate professional indemnity policies are necessary for claims involving errors and omissions.
Commercial insurance is indispensable for businesses, providing a protective layer against unexpected mishaps that could strain finances. Whether you’re a small business owner, retailer, or part of an IT company, CGL ensures security against legal costs. Secure Now simplifies the public liability insurance process, offering competitive quotes and additional services like a single point of contact and a specialised servicing team for a hassle-free experience. Claims are subject to terms and conditions set forth under the commercial insurance policy. *
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.