A commercial general liability (CGL) policy protects your business from financial loss should you be liable for property damage, bodily injury, personal and advertising injury caused by your services, business operations or your employees. Simply put, a CGL policy casts a wide net of protection for you and your business.
General Commercial Liability Insurance
The only way to effectively protect the assets of your business is to carry adequate Commercial General Liability (CGL) Insurance coverage. CGL protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.
What does CGL insurance cover?
A typical CGL insurance policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations, and can be offered as a package policy with other coverages such as Property, Crime, Automobile, etc. As a safeguard against liability, CGL insurance enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost to defend and settle claims. Here is more detail about what a typical CGL policy may cover:
- Automatic Additional Insured – Coverage is provided for written contracts, agreements and permits.
- Personal and Advertising Injury – Protects against offences made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
- Defence Costs – Provides coverage for legal expenses for liability claims brought against your business, regardless of who is at fault.
- Medical Expenses – Provides coverage for medical expenses if someone is injured on your premises or by your products.
- Occupiers and Operations Liability – Provides coverage for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
- Products Liability – Provides coverage for bodily injury and property damage sustained by others as a result of your products.
How Much CGL Insurance Coverage Does Your Business Need
The amount of coverage that your business needs depends on three factors: perceived risk, where you operate your business and the type of products you manufacture.
- Perceived Risk – Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more coverage than another organization that manufactures stuffed animals.
- Premises and Operations Liability – If you operate in a province or area that has a reputation for rewarding high damages, then you may wish to purchase higher limits of liability.
- Type of Product Manufactured – If you manufacture a dangerous product, you may want to carry higher limits of liability.
Understanding the implications of insurance policy language
What’s covered, and how that coverage is defined, depends on what the individual insurance policy wordings say. At Reliance, we don’t expect our clients to automatically understand the implications of insurance policy language. That’s our job and we will ensure your insurers provide broader coverage. We’ll also help you make an informed decision about the risks you may be assuming.
Partner with Reliance to protect your organization and continue on the path to success.
You may need:
Business Interruption
Prevent loss of income if your premises are damaged.
Directors & Officers
As a director or officer, protect yourself from being sued.
Cyber Security
Protect your digital and financial assets against cyber attacks.
Employee Benefits
Health insurance and retirement planning options for your employees.
Reliance is genuine about making sure your business is properly protected and puts your interests first above all else.
— President, Value Drivers
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