Commercial General Liability Insurance Explained: What Your Policy Covers

American Team Managers

Underwriting your business can be a complicated, often confusing task. Most policies are niche-based, with each option presenting an irresistible offer. So what does commercial general liability coverage cover?

Body Injuries

CGL insurance mitigates losses when a business is found liable in an injury suit. For example, if a delivery guy trips over loose flooring in your office and breaks an arm, this policy foots his medical bills and lost wages. It also extends to emotional distress claims, even in the absence of physical harm.

A typical commercial general liability premium will handle injury complaints from all of the following:

  • Customers
  • Maintenance personnel
  • Vendors
  • Visitors

Property Damage

Property damage often leads to costly legal expenses. If one of your trucks accidentally wrecks someone’s property while on a job, you could face a lawsuit. Chances of winning this kind of case are often incredibly slim. That’s why you need to cushion your business from this type of loss.

That said, it is also worth noting that you need CGL insurance to substitute your auto liability policy. According to American Team Managers, an AL premium insures commercial vehicles only, and it comes with financial limitations that can be exceeded by only one incident. That makes commercial general liability coverage necessary for all businesses as it takes a broader approach to indemnity.

Owning a business is rewarding, but it also comes with risks. CGL coverage can protect your commercial venture against the unexpected and provide valuable peace of mind.