Things to Know About Commercial General Liability Insurance
Commercial General Liability (CGL) insurance is essential for businesses of all sizes. It offers protection against financial loss due to claims of bodily injury, property damage, and personal or advertising injury caused by your business operations, products, or services. First Choice Agency provides commercial general liability insurance in Brooklyn, West Islip, Bay Shore, Bayside, Amityville, Queens, NY and surrounding areas.
One of the primary benefits of CGL insurance is that it covers legal costs, settlements, and judgments resulting from covered claims, even if the lawsuit is groundless. This can be a financial lifesaver, especially for small businesses that may not have the resources to handle costly legal battles.
CGL policies typically include three main types of coverage:
Bodily Injury and Property Damage Liability – Covers physical harm to individuals or damage to property caused by your business operations.
Personal and Advertising Injury – Covers offenses like libel, slander, copyright infringement, and false advertising.
Medical Payments – Pays for minor medical expenses if someone is injured on your premises, regardless of fault.
However, it’s important to understand what CGL insurance does not cover. It usually excludes professional errors (which require professional liability insurance), employee injuries (covered by workers’ compensation), and intentional acts. Also, claims related to pollution, contractual liability, or cyberattacks may not be included unless specifically added via endorsements.
Premium costs for CGL insurance vary depending on factors like business size, industry risk, location, and claims history. Many clients and landlords require proof of CGL coverage before signing contracts or leases, making it a standard part of doing business.
To ensure adequate protection, businesses should assess their risk exposure and consider customizing their policy with endorsements or combining it with other coverages in a Business Owner’s Policy (BOP). Consulting an insurance professional can help tailor coverage to specific business needs. In summary, CGL insurance is a foundational safeguard that helps protect your business from unexpected liability and financial loss.
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