Commercial General Liability Insurance Coverage

Commercial General Liability Insurance Coverage is a form of commercial liability insurance that protects companies from claims for bodily injury or property damage.

This type of insurance is the most common for small businesses. It covers the business for liability for accidents that may occur on their premises, including injuries sustained by employees and third parties. It also covers any damage that is caused by your employees. The policy can also cover advertising injury liability and product liability claims.

Commercial General Liability Insurance Coverage protects you from damages, injuries, and losses that occur on your property or in your business. It covers you for bodily injury, property damage, and personal injury.

This coverage pays for legal costs in the event of a lawsuit, and it provides protection against third-party lawsuits related to workers’ compensation, product liability, environmental contamination and employer’s liability.

Table of Contents

What is Commercial General Liability

Commercial General Liability Insurance is a type of business insurance that helps protect your company from lawsuits, errors and omissions, and more.

Business insurance is a must-have for any company. It can help you protect your business from lawsuits, theft, and other types of liability.

Commercial General Liability (CGL) insurance protects your company in the event that anyone who suffers harm at your business files a lawsuit against you. This includes customers, vendors, employees, and even people who are injured on the premises or by your products or services.

Commercial General Liability insurance covers bodily injury and property damage claims related to accidents that occur at places like:

your place of business
your warehouse or storage facility
your vehicle or employee’s vehicle (if they’re driving it for work purposes)
any property owned by you or an employee (including their home)

Commercial General Liability insurance covers a variety of situations, including claims related to bodily injury or property damage. It also provides protection against claims that may arise from other types of losses, such as libel and slander, defamation of character and invasion of privacy.

The Cost of Commercial General Liability Insurance Coverage

Commercial General Liability Insurance usually costs around five percent of your annual revenue or about $1,000 per $100,000 in revenue.

This is a good deal compared to the cost of lawsuits, which can easily run into the millions. Commercial General Liability Insurance typically costs less than $5,000 per year for most small businesses.

The annual premium for this policy is $2,500 for a small business with less than $1 million in gross revenue. A large business with over $20 million in gross revenue would pay $7,500 annually.

The cost of Commercial General Liability Insurance varies depending on the nature of your business. Premiums are calculated based on your risk profile as well as your geographical location and industry.

For example, if you’re based in an area with a high crime rate or if you manufacture goods that could pose a danger to consumers if they malfunctioned (like cars), then you’ll pay more for this type of insurance than someone who doesn’t face those risks.

Factors that Affect the Cost of Commercial General Liability Insurance

The Cost of Commercial General Liability Insurance varies depending on the size of your company, its location and the risk level associated with the products or services you offer. It’s important to compare rates from multiple providers to make sure you get the best value for your dollar.

The cost of commercial general liability insurance depends on various factors including:

The type of business and industry in which the company operates;
The size of the company;
The number of employees;
The amount of coverage selected;
Whether the company is owned by an individual or corporation;
Whether the company has been sued in the past and what happened with those lawsuits; and
If a loss occurs, how much money you ask for in damages.
Your industry category (the more dangerous or risky industries will have higher premiums)
Your specific needs (whether you need cover for any additional perils)
Your risk profile (how likely it is that you’ll be sued)

What are the Types of Commercial General Liability Insurance Coverage?

There are two types of coverage:

Physical Damage
Personal Injury
Advertising Injury

Property Damage

Property Damage coverage protects your building from damage caused by storms or fires and other events.

Property damage includes damage to real property (e.g., buildings) and personal property (e.g., inventory).

Personal Injury

Personal injury coverage covers any claims made by someone who was injured on your premises or as a result of an accident at your place of business.

Personal injuries include bodily harm or illness that occurs during normal business activities or while on company premises (e.g., slips and falls).

Advertising Injury

Advertising injury covers claims arising from false advertising or disparaging statements made about another person or entity in your advertising materials.

Commercial general liability insurance can provide coverage for bodily injury, property damage and personal injury claims brought against you or your employees. The policy limits can be purchased in various amounts depending on the nature of your business and its risk exposure. You should have enough coverage to cover all of your potential liabilities in case of an accident or other claim against your company. The following are some examples of what can be covered:

What does it Cover?

Commercial General Liability Insurance covers you for a wide range of incidents, including:

Bodily injury to others and property damage to others
Libel and slander
Personal injury or illness arising out of your business operation or products
Damage to your business’ property caused by your employees or contractors (including fire damage)

Commercial General liability insurance covers a business’s liabilities, or legal responsibility to pay for any damage or injury caused by the business. Typical coverage includes bodily injury, property damage, and personal injury. A policy may also protect against products liability claims and errors and omissions.

The policy covers bodily injury or property damage to others caused by you or your employees acting within the scope of their employment. It also covers legal fees related to defending against lawsuits and judgments against you, as well as medical expenses incurred by those injured on your behalf.

This kind of insurance provides protection for your company in the event that someone is injured on your business premises, or if they are injured while using one of your products.

Injuries caused by your products, such as food poisoning from a restaurant’s food or defective merchandise from your store’s shelves. For example, if a customer slips on a slick floor at your store and breaks his arm, you may be liable for his medical bills under this type of insurance policy.

It also covers you if someone sues your company for damages resulting from an injury. You can also get coverage for additional types of claims including libel and slander, invasion of privacy and defamation of character.

Commercial General liability insurance covers bodily injury and property damage caused by your business. It also includes medical payments if anyone is injured on your premises or coming to visit you.

The policy can cover advertising injury as well, which means it will help pay for any damages caused by an error in your advertising materials.

A personal injury claim could be filed if someone believes they were hurt because of something related to your business activities, such as if a customer slipped on spillage in the store or a customer lost their balance while climbing onto a chair.

Damage to rented premises is another common coverage that’s offered under commercial general liability insurance policies—if someone breaks something at a rented location because of negligence on your part, this type of coverage would help pay for that damage

Are there limitations in Commercial General Liability Insurance Coverage?

There are some limitations to your policy.

Intentional errors and omissions are not covered, so if you make a mistake on purpose, you’ll be paying for it out of pocket.

Another thing that’s not covered: pollution. In addition to that, damages caused by loss or misuse of property in the care, custody or control of the insured person can also be excluded from coverage.

Some lawsuits may not be covered either—for example those alleging discrimination based on race, color, religion or sex may be considered “intentional” acts and thus excluded from coverage.

Who needs Commercial General Liability Insurance?

The short answer is, everyone. Even if you think your business isn’t at risk for a lawsuit, there’s no reason not to protect yourself.

If your business is small and low-risk, Commercial General Liability Insurance can provide protection against some of the most common types of lawsuits that may arise against you—and at an affordable price.

If your company has an excellent track record and very little risk of being sued by customers or employees, Commercial General Liability insurance might seem unnecessary—but it’s still worth considering since even the best companies are sometimes subject to sudden unforeseen circumstances that could leave them vulnerable financially.

Conclusion

And finally, if your company operates in an industry with many high-risk activities (such as manufacturing or construction), then Commercial General Liability Coverage will give you peace of mind knowing that any accidents or disasters resulting from those activities will be covered by insurance instead of coming out of pocketbook (or worse).

Commercial General Liability Insurance is a good place to start when talking about business insurance.

You may have heard this before, but it’s worth repeating: Commercial General Liability Insurance is a good place to start when talking about business insurance.

It’s not the only type of coverage you need, but it provides a wide range of protection that can help protect your business in the event of any number of things – like claims for bodily injury or property damage caused by your employees or customers. It also covers personal injury claims made against you as an owner or officer of your company. And it protects against advertising injury claims as well.