What is General Liability Insurance?
General Liability Insurance (commonly known as Commercial General Liability, CGL or Business Liability Insurance) covers a wide range of risks associated with running a business. This type of insurance is crucial for covering potential lawsuits and claims that could arise from everyday business activities.
CGL coverage can include
Bodily Injury
Coverage for damages due to physical injury to a third party caused by your business operations. This includes coverage for legal costs related to such claims.
Property Damage
Coverage for the costs of repairing or replacing property belonging to a third party that was damaged by your business or employees during business operations.
Personal and Advertising Injury
Protection against claims for harm caused by slander, libel, invasion of privacy, or unauthorized use of advertising content.
Medical Payments
Coverage for immediate medical expenses of third parties injured on your premises or as a result of your business activities, regardless of fault.
Legal Defense Costs
Coverage for the legal expenses your business may incur if sued for covered claims, even if the lawsuit is unfounded.
Products-Completed Operations
Coverage for risks associated with products or services your business has delivered or performed, which cause damage or injury after completion or delivery.
Damage to Premises Rented to You
Coverage for certain types of damage to premises you rent, subject to the terms and limits of your policy.
Contractual Liability
Coverage may apply to certain liability obligations assumed under an insured contract, subject to the terms and conditions of your policy.
This insurance provides essential protection for businesses of all sizes and types in California, covering the most common risks that can threaten their financial stability.
Benefits of CGL Insurance
Financial Protection
General Liability Insurance helps cover the costs of legal fees and settlements that can otherwise drain your business finances. This insurance can help protect your business from the financial impact of covered lawsuits and claims.
Protection for Business Owners
Depending on how your business is structured and who is insured under the policy, general liability coverage may help protect your business and certain insured individuals from covered liability claims.
Builds Customer Trust
Having liability insurance demonstrates to clients and customers that you are a responsible business owner who takes risk management seriously, which can enhance your business’s credibility.
Who Needs General Liability Insurance?
A commercial general liability policy is a good fit for businesses that work with clients, sell products, advertise, and more. While not required by law, general liability is the most common type of business insurance because it protects from a variety of third-party claims and lawsuits.
High-Risk Industries such as construction, retail, and service-based businesses, face higher risks and should strongly consider General Liability Insurance.
Common professions that purchase general liability insurance
- Architects
- Caterers
- Engineers
- Food trucks
- Landscapers
- Painters
- Photographers
- Plumbers
In some cases, employers or clients might require you to carry a certain amount of general liability before you can work for them. Read through your contracts carefully to make sure you select the right limits when getting a general liability insurance quote.
