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General Liability Insurance

All-inclusive coverage for your business. Safeguard against claims from operations, premises, products, or services-related liabilities.

What is General Liability Insurance?

Imagine you own a store, and a customer slips and falls, or your product somehow causes harm to a user – the costs of legal defense and potential settlements could be financially devastating. But with a CGL policy, you are protected against these risks. It can pay for immediate medical expenses in such cases, providing quick relief and potentially mitigating a larger claim. It also covers personal and advertising injuries. This means if your business unintentionally infringes on someone else’s copyright or is accused of libel or slander during advertising, your CGL policy has got you covered.

Features of General Liability Insurance

Works on Occurrence Basis
Claims can be made even after a policy expires given that the incident happened within the policy’s active period.
Start Date
Claims cannot be filed for any incidents that occurred prior to the date when the coverage of the policy begins.
Insurance Period
Any incident that happens between the policy's effective date to the policy's expiration date is covered. Renewal before expiration date is essential to maintain coverage.

Who needs General Liability Insurance ?
No matter what industry you’re in or the size of the business, having general liability insurance is a smart move. Because of its comprehensive nature, this insurance policy fits most businesses that have interactions with customers. From retail shops and tech startups to large manufacturers, this policy protects against legal and financial issues from third-party claims.

General Liability Insurance is necessary for
various kinds of businesses

Why get General Liability Insurance?

We all know that accidents can happen, even when you’re doing everything right. In fact, 43% of small business owners have reported being threatened with or involved in a civil lawsuit. That’s when general liability insurance becomes your go-to solution. It takes care of legal defense costs, settlements, and judgments that might come up from third-party claims, helping to keep your business secure. And it doesn’t stop there; it also covers personal and advertising injury claims, ensuring your reputation stays intact. With general liability insurance, you can breathe easier knowing your business has a strong safety net in place for unexpected situations.

A General Liability Insurance policy addresses claims related to

Operational accidents
It covers legal fees, settlements, or judgment costs for accidents, injuries, and damages arising from your business operations, products, or services.
Bodily injury
It protects your business from claims related to bodily injuries resulting from accidents on your premises or due to your business operations.
Third-party property damage
It safeguards your business in instances where your company or employees cause damage to a third party's property, whether through direct actions or negligence.
Personal and advertising injury
It covers claims involving defamation, libel, slander, copyright infringement, or invasion of privacy associated with your business activities, including advertising efforts that may cause harm to others.

Coverages

CGL insurance offers many benefits. Some of the major coverages in the insurance policy are given below:

Legal Representation Costs

These include defense expenses for providing documentation or information to investigators concerning incidents, property damage, bodily injury, or personal and advertising injury claims.

Public Relations Costs

It reimburses expenses for managing and mitigating any negative impact on your company's reputation due to covered claims.

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Court Attendance Costs

It offers protection for reasonable costs and expenses incurred by attending court proceedings, hearings, trials, and depositions related to the defense of covered claims.

Exclusions

CGL insurance offers many exclusions. Some of the major exclusions in the insurance policy are given below –

Injuries to Employees

If an employee is injured on the job, General Liability Insurance doesn't cover it. Instead, Workers' Compensation Insurance provides the necessary protection in these cases.

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Professional Mistakes or Negligence

General Liability Insurance doesn't cover errors or omissions made by professionals in their line of work. For that, you'll need Professional Liability Insurance.

Damages to Business Property

If your own business property gets damaged, General Liability Insurance won't provide coverage. You'll need Commercial Property Insurance to protect your assets in this situation.

About General Liability Insurance

What is the difference between commercial general liability and commercial umbrella insurance?

Commercial General Liability (CGL) insurance covers liability claims related to bodily injury, property damage, and personal and advertising injury. On the other hand, Commercial Umbrella Insurance provides excess liability coverage beyond the limits of primary insurance policies, such as CGL or professional liability insurance. For instance, if a business faces a liability claim that exceeds its CGL policy limits, an umbrella policy can offer additional coverage to help cover the costs of the claim.

What is general liability insurance for contractors?

General Liability Insurance for contractors protects contractors and their businesses from financial losses due to liability claims. This insurance typically covers claims for bodily injury, property damage, and personal and advertising injury. It can also cover legal defense costs and any damages awarded to the claimant.

Does general liability insurance protect my store, office, or physical location?

Yes. General Liability Insurance covers claims arising from third-party bodily injury or property damage occurring on your business premises. For example, if a customer slips and falls in your store, your general liability insurance may cover their medical expenses and any damages they may seek as a result of the injury.

What protection does general liability insurance provide against social media risks?

General Liability Insurance can cover advertising injury claims, including certain types of claims related to social media use. For instance, if your business faces a libel or slander claim due to a social media post, your general liability insurance may cover legal defense costs and any damages awarded. Some policies may also offer additional coverage for claims related to hacked social media accounts or leaked personal information through social media channels.

How much general liability insurance do I need?

The amount of general liability insurance you need depends on various factors, such as your business size, type, location, and the level of risk you’re willing to assume. Consider these factors when calculating the insurance coverage, you need.

Can I customize my commercial general liability insurance policy?

Yes, you can tailor your Commercial general liability (CGL) insurance policy to suit your specific business needs and risk profile. Common customizations include increasing policy limits, adding endorsements, removing exclusions, and adding additional insured.

What happens if I have a claim that exceeds my commercial general liability insurance coverage?

If a claim exceeds your Commercial general liability (CGL) insurance coverage, you may need to pay the remaining amount out of pocket. This amount, called the ‘coverage gap,’ is not covered by your policy.

Does commercial general liability insurance cover damages to my property?

No, commercial general liability (CGL) insurance doesn’t cover damages to your property. CGL insurance protects your business from liability claims for bodily injury or property damage caused by you or your employees to others.

Does commercial general liability insurance cover customer or client injuries?

Yes, commercial general liability (CGL) insurance covers bodily injury to customers or clients occurring on your business premises or as a result of your business operations. It also covers bodily injury caused by your products or services.