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What the Heck is Commercial General Liability?

Commercial general liability (CGL) insurance is a type of insurance policy that provides coverage for businesses against liability claims for bodily injury and property damage arising out of the premises, operations, products, and completed operations of the business. It typically covers the cost of legal defense and damages if the business is sued by a third party for such incidents.

Here's a breakdown of what CGL insurance typically covers:

  1. Bodily Injury: If a customer or third party is injured on your business premises or as a result of your business operations, CGL insurance can cover medical expenses, legal fees, and damages awarded in a lawsuit.

  2. Property Damage: If your business operations cause damage to someone else's property, CGL insurance can cover the costs associated with repair or replacement.

  3. Personal and Advertising Injury: CGL insurance can also provide coverage for non-physical injuries such as libel, slander, defamation, and copyright infringement arising from your advertising activities.

  4. Legal Defense Costs: CGL insurance covers the cost of legal defense, including attorney fees, court costs, and settlements or judgments awarded against your business.

Who needs commercial general liability insurance?

  1. Small Businesses: Small businesses, including sole proprietors, partnerships, and corporations, often need CGL insurance to protect against liability claims that could potentially bankrupt the business.

  2. Contractors and Construction Companies: Businesses involved in construction or contracting work often face risks related to property damage and bodily injury. CGL insurance can protect these businesses from liability claims arising from accidents or negligence on the job site.

  3. Retailers and Service Providers: Businesses that interact with customers on their premises, such as retail stores, restaurants, and service providers, should have CGL insurance to protect against liability claims for slip and fall accidents, product-related injuries, or other incidents.

  4. Manufacturers and Distributors: Companies involved in manufacturing, distributing, or selling products need CGL insurance to protect against liability claims related to product defects, malfunction, or misuse.

  5. Professionals: Professionals such as consultants, architects, engineers, and accountants may also need CGL insurance to protect against liability claims arising from errors or omissions in their professional services.

Ultimately, any business that interacts with customers, vendors, or the public in any way should consider obtaining commercial general liability insurance to protect against the financial risks associated with liability claims.

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