General Liability

Commercial General Liability

Coverage for events occurring on the business’ premises.

General Liability Insurance is type of insurance policy which provides coverage to a business for bodily injury, personal injury, and property damage caused by the business’ operations, products, or injury that occurs on the business’ premises. Commercial general liability (or CGL) insurance is considered comprehensive business insurance, though it does not cover all risks a business may face.

Commercial general liability policies have different levels of coverage. Policies generally include premises coverage, which protects the business from claims that occur at the business’ physical location during regular business operations, and may also include coverage for bodily injury and property damage that is the result of finished products. Excess liability coverage can be purchased in order to cover claims exceeding the limit of the CGL policy. Some commercial general liability policies have exclusions for what actions are covered. Ex., a policy may not cover the costs associated with a product recall.

When purchasing commercial general liability insurance, it is important to differentiate between a "claims-made" policy and an "occurrence" policy. A claims-made policy provides coverage over a specific time period, and covers claims made during that time period, even if the event occurred at a different time. An occurrence policy is different in that it covers claims only if the event occurred during a specified time period, and does not cover claims stemming from events which occurred before the policy came into effect.

In addition to commercial general liability policies, businesses may also purchase policies that provide coverage for other business risks. For example, the business may purchase employment practices liability coverage to protect itself from claims associated with sexual harassment, wrongful termination, and discrimination. It may also purchase insurance to cover errors and omissions made in financial reporting statements, as well as insurance that covers damages resulting from the actions of its directors and officers.