Why Does My Business Need General Liability Insurance?
As a business owner, you have several things to worry about, including things like managing your budget, keeping employees happy, getting new customers, and keeping an eye on the competition. The last thing you want to worry about is facing substantial financial losses as the result of a claim.
Commercial General Liability (CGL) insurance is there to protect your business from bodily injury claims, property damage claims, and advertising and personal injury claims. We take a closer look at what you can typically expect from a CGL policy, as well as what it doesn’t include.
What is CGL Insurance?
Commercial General Liability insurance, also known as business liability insurance and commercial liability insurance, helps to protect your business from financial loss as a result of claims of injury or damage caused by you or your employees, your services, or your business operations.
You can typically expect the policy to cover:
Bodily injury: This includes injuries caused by you or an employee at the customer’s place of work or home, as well as bodily injuries obtained at your place of business by a person other than an employee.
Property damage: Property damage caused by you or an employee.
Advertising and personal injury: This includes losses caused by your advertising, as well as copyright infringement, slander, libel, wrongful eviction, false arrest, violation of privacy and other such acts that cause damage to someone’s reputation or rights.
While CGL insurance provides businesses with some of the broadest insurance coverage available on the market, it’s important to note that most policies do not cover the following:
• Your property
• Employee injuries / workers’ compensation
• Professional mistakes
• Auto-related coverage
• Employment disputes
• Personal identifiable information
• Intent to injure
• Known claims before start of policy
If you require coverage for any of the above, then speak to your insurance agent to find out how you can obtain the right coverage for your needs. You may need to purchase additional auto insurance, professional liability insurance, workers’ compensation insurance, and more, so be sure to go over your unique business needs with your provider.
How Much Insurance Do I Need?
The type of products you manufacture and/or the type of business you operate will help to determine how much liability insurance you should carry.
For instance, if you run a high-risk business, such as a retail business with a high volume of interaction with the public, then you would want a much higher coverage than a self-employed person running a startup in a low-risk industry, such as a handyman or painter.
How Much Does Commercial General Liability Insurance Cost?
When calculating the cost of a CGL insurance policy, several factors are taken into account. Since all businesses are different and vary in size, type of business, claims history, experience in the industry, and much more, it is difficult to give an estimate without knowing all the details.
That is why it is best to speak directly with the insurance provider so they can give you a more accurate quote. Remember, your business can be sued even if you did nothing wrong, so it’s best that you protect yourself in case an unfortunate accident were to occur.