What Is Commercial General Liability Insurance?

by Hank Coleman

What Is Commercial General Liability Insurance?What Is Commercial General Liability Insurance? Commercial general liability insurance, which is also known as CGL, is a business insurance policy that covers services of the injured and compensates for most negligence that occurs according to a law or contract. Commercial general liability insurance typically provides liability coverage for a loss or a bodily injury that occurs while the policy is in place for a set period of time. The commercial general liability insurance can be written either to cover the business for a set period of time or only when a claim is made.

What Is Commercial General Liability Insurance?

Commercial General Liability Insurance is designed to insurance business policyholders against lawsuits and other financial claims that people or employees can make against it. This of course is very important for businesses who need to protect themselves from lawsuits. If the business which has a commercial general liability insurance policy is sued, they will be protected by the business insurance policy assuming it was during the period of coverage. This helps a business avoid financial disaster.

There are many characteristics and factors that must be considered before purchasing commercial general liability insurance policies for your business. HEre are a few things to consider before making a purchase.

Six Characteristics Of Commercial General Liability Insurance To Consider

Deductible

As with all insurance policies, the amount of your deductible plays a direct role in the amount of premiums that you pay for your insurance policy. The same is true for commercial general liability insurance policies for businesses.

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Sunset Clause

Commercial general liability insurance have a provision called the sunset clause which limits the number of years that a claim can be reported against a business’ commercial general liability insurance policy.

Medical Payments

A commercial general liability insurance policy covers medical payments when an injury is caused by the company’s negligence. These medical payments are typically provided to the injured party through a third-party, and they can supplement any Workers Compensation insurance that a person may receive as well.

Aggregate Limit

The aggregate limit is the maximum amount of money that a commercial general liability insurance policy will pay for a claim during the policy period. The aggregate limit of commercial general liability insurance applies to any damages that must be paid for personal injury, damage to property, injuries from advertising injury, and medical expenses.

Per Occurrence Limit

Just like your car insurance coverage, commercial general liability insurance policies have a maximum amount of money that the business insurance company will pay towards a single claim against your commercial general liability insurance policy. You will have to take this into consideration when you purchase your commercial general liability insurance because these amounts help to determine your premiums.

Advertising and Personal Injury Limits

There is a maximum amount of money that your business insurance policy will pay for a claim from your business’ advertising. The same is true for claims resulting from personal injury which include damages from libel, slander, false arrest, and other things that non-business policies, homeowners insurance, car insurance policy owners, and the like are not used having to insure themselves against.

Every business needs an insurance policy that provides coverage to them for their products and services that have the potential of injurig someone or one of their workers. Like all insurance policies, commercial general liability insurance protects businesses from lawsuits that are generated from injury and neglect that may occur while making products or providing a service.

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 578 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 1 comment… read it below or add one }

George Scott

There are lots of different kinds of insurance for entrepreneurs like commercial auto, general liability, errors & omissions. You should check into them all with an agent/broker who can steer you in the right direction.

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