If your business has only one type of business insurance, it’s most likely a commercial general liability insurance policy. Why? Simply put, commercial general liability, or CGL, policies protect your business against claims brought upon your business by a third party as it relates to bodily injury or property damage. If a third party, such as a customer, claims that injuries or property damage occurred as a direct result of your business’ actions (or lack thereof), you could face serious financial setbacks as a result of losing the claim.
A CGL policy protects you and your business from these very threats by covering your business in three primary ways:
- Premises liability covers your business’ liability should a claim arise from any condition found on or within the business’ premises. This includes any operations performed by your business on these premises as well.
- Products liability protects your business from liability resulting from the manufacture, sale, handling, or distribution of physical products if those products allegedly caused harm or property damage to the claimant.
- Completed operations protects against liability from injury or damage allegedly caused by completed work that your business was responsible for performing.
A good commercial liability insurance policy protects your business from these liability threats whether the claims are legitimate or not by covering the costs associated with defending against the claim and any judgements awarded to the third party as a result of the claim.
These business liability insurance policies also cover the actions of people working within your organization as long as those employees were working in their capacity as an employee at the time of the alleged injury or property damage.
In other words, a CGL policy is one of the most important business insurance policies your business can have and it is one type of business insurance that should never be taken lightly. Often, CGL is included within a business owner’s policy but it can be offered as a standalone small business insurance product as well.
If you would like to learn more about how a CGL policy can help to ensure the future of your business, give Peter a call at (888) 725-7776 or Contact Us today for a Free Quote.