What is CGL insurance?

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CGL insurance refers to Commercial General Liability insurance policies that are applicable to businesses, whether big or small. This type of insurance basically helps protect business owners from possible lawsuits wherein there is bodily injury involved or when there is damage in one’s property. This type of insurance basically gives protection to a business in terms of possible financial losses when there are complaints against them from clients or customers or when part of the property gets damaged. With these instances, legal costs could skyrocket and business owners, especially small ones, may not have enough money to stay afloat and keep their businesses. In order for these businesses to avoid being bankrupt, availing of CGL insurance may be a good choice for them.

In operating a particular business, there may be a time when unfortunate incidents could happen. Some business owners may be slapped with lawsuits from clients or customers when they are harmed for example inside the business’ building or premises. When this instance happens, the owners may not have the financial capacity to cover the legal proceedings. For this very reason, a Commercial General Liability insurance coverage may come in very handy. This insurance will be effective and active on specified dates of coverage and frees the business owner from liability during the coverage period.

Aside from property damage and bodily injury to customers, business owners may also use CGL insurance for lawsuits regarding advertising or marketing campaigns. If a particular customer of the business for example files a lawsuit regarding a product that a company featured on its advertising campaigns, the company may be protected from liability through the commercial General Liability insurance coverage. As with other liability insurance types, CGL insurance also imposes specific exclusions and limitations for the coverage depending on what is required or needed by a particular business or company. Specifications are also indicated in terms of the conditions for making a claim and the requirements thereof.

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