What Does Commercial General Liability Insurance Cover?

Commercial General Liability Insurance is a type of insurance that provides coverage to businesses for bodily injury, personal injury and property damages, which may be caused by business operations. Commercial General Liability Insurance is comprehensive business insurance, but the insurance does not provide coverage for all types of risks and damages associated with businesses.

Commercial General liability Coverages:

Commercial General Liability Insurance covers a wide range of unpredictable overheads such as bodily injuries, property damage, service liabilities, negligence, lawsuits, and others. The policy helps to protect the business and its assets, from such claims. The insurance also protects the business from medical expenses, rent payments, advertising costs, product failures, and other costs. Commercial General Liability Insurance is also often referred to as simply General Liability Insurance or as Business Liability Insurance. What is General liability insurance?

There are different coverage levels offered in commercial general liability insurance (CGLI). The insurance policy coverage may include business premises coverage, for all damages and injuries that may occur within the premises of the business location, and those damages and injuries that are caused as a result of the business operations. Such a type of insurance coverage includes coverage for bodily injuries, property damage and similar caused by the finished products.

Commercial General Liability Insurance can be purchased also with extended liability coverage, to cover the claims and liabilities that are not normally covered by the insurance policy. It is essential to read and learn well the claims covered by the policy because there are some commercial general liability policies that may include exclusions and exceptions. Often, the policy does not provide coverage for costs related to a product recall.

Importance of Clain Made Policy and Occurrence Policy

It is important to remember, for businesses that there is a distinction between a claim made policy and an occurrence policy. An occurrence policy covers claims for an injury or other events that occur during the policy term. The coverage depends on the time of the event. A claims-made policy provides coverage for claims that are made during the policy period. In this type of policy, coverage depends on the time of the claim. Commercial General Liability Insurances are generally an occurrence policy.

Who needs general liability insurance?

Furthermore, given that general liability insurances can be personalized to suit the business types and their needs, it is ideal for a small business to invest in. General Liability Insurance is the best possible safeguard for any small business. Businesses can always add additional provisions to suit their business requirements. Commercial General Liability Insurance does not provide coverage for costs of damage to the company-owned property, costs of personal injury claims, costs of auto accidents and other similar claims. Commercial General Liability Insurance provides coverage for third party bodily injury.

References:
https://www.goldenbenchmark.com/business-insurance-california/