What Is Business Liability Insurance Coverage – Commercial general liability (CGL) insurance is a type of policy that provides protection for a business against bodily injury, bodily injury, and property damage caused by the company’s operations, products, or injuries that occur on the company’s premises.
Commercial liability insurance is considered comprehensive business insurance, although it does not cover all the risks a business may face.
What Is Business Liability Insurance Coverage
Commercial liability policies have different levels of coverage. The policy may include site coverage, which protects the company against claims that occur at the company’s physical location during the ordinary course of business operations.
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It may also provide coverage for bodily injury and property damage resulting from the finished product or service being performed elsewhere.
Commercial insurance companies also sell excess liability coverage, which can be purchased to cover claims that exceed the CGL policy limit. Some commercial liability policies may contain exclusions that limit the activities covered. For example, your policy may not cover costs associated with a product recall.
When purchasing commercial liability insurance, it is important for a business to distinguish between a claims-made policy and an incidental policy.
A claims-only policy provides cover whenever a claim is made, regardless of when the event giving rise to the claim occurred. An incident policy covers claims where the event relating to the claim occurred during the policy period, even if the policy has expired.
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In addition to commercial liability policies, companies can also purchase policies that provide protection against other business risks.
For example, a company may purchase employment practices liability insurance to protect against claims related to sexual harassment, wrongful termination, and discrimination. It may also purchase insurance to cover errors and omissions in its financial statements, as well as coverage for damages arising from the actions of its directors and officers.
A typical general insurance policy covers accidental damage or injury, but does not cover injuries that are intentional or expected to occur.
Depending on business needs, a company may need to name other companies or individuals as “additional insureds” under its liability insurance policy. This is a common occurrence when companies enter into a contract with another entity.
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For example, if an auto repair shop contracts with ABC Co. to provide cleaning services to its facility, ABC Co. may request workshop owners to add ABC Co. as an “additional insured” under its general commercial liability coverage policy.
In each of these cases, a general liability policy may cover the costs of hiring lawyers to defend the company or the costs of settling claims. If a company makes frequent claims on CGL insurance, the insurer may increase the cost of the policy premium.
Commercial liability insurance covers bodily injury or property damage that occurs on business premises. This type of policy can also protect the company against claims of slander, defamation or advertising damage.
Naturally, the cost of commercial liability insurance depends on the size of the company being insured, the risk of its business and the amount of coverage required. Some insurers say their customers pay between $300 and $600 for $1 million in coverage. Others say their customers can pay up to $1,000.
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Most CGL policies do not cover willful or expected damage by the insured. They also do not cover damage resulting from poisoning (in alcohol-related activities), pollution, cars or other vehicles, damage to the company’s work or additional liabilities that the insured person may assume. A company dealing with these types of risks should purchase additional insurance to ensure full protection.
By purchasing commercial liability insurance, you can protect your business against a variety of risks, including the risk of lawsuits arising from your day-to-day business operations.
CGL policies cover claims for property damage, bodily injury (such as libel or slander), personal injury and advertising damage. This insurance will help you cover legal fees or settlement costs in the event of a lawsuit. You can also expand your coverage to include errors and omissions, undue liability, or employment practices liability extensions.
You can’t predict what will happen in the future, but you can protect your business and reduce risk with CGL policy.
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The offers that appear in this table are from companies from which he receives compensation. This compensation may impact how and where offers are displayed. does not cover all offers available on the market. Whether your grand opening is this weekend or it happened last century, it’s important that your business is fully protected. But you may be asking yourself, “Isn’t insurance super expensive?” Our response: “It doesn’t have to be that way.”
Our independent insurance agents review and compare policies from multiple carriers to find the perfect coverage for you. That means protection AND price. And because no two companies are the same, they will make sure your unique needs are secured, loaded and ready for whatever may come.
We are here to help you simplify your search. But we can’t just say, “It’ll be $5 a month, will it be cash or a check?” However, we can provide you with some information about business insurance rates and how they are calculated to get you started.
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Insurance company number crunchers start by reviewing a list of various risk factors (such as size, location, etc.).
Each of these risk factors has a cost that is determined by research into historical trends or analytical models (gosh, it’s getting really scientific here). They then start checking the relevant factors, add them all up, add a pinch of profit margin as they see fit and – voila – your rate is quoted.
NOTE: The cost of insurance may change over time as the financial requirements to offer the plan may increase. Just information.
Business insurance is a contract between a business and an insurance company. This contract essentially states that the company will pay the premium and the insurance company will help replace, repair or recover your company’s covered property if it is ever lost, stolen or damaged.
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Think you don’t need it? Think again. Insurance is important to protect your business against all kinds of bad events that happen almost every day, such as:
Owning a business can be rewarding, but it can also be a real pain if you’re a bit worried. To address your entrepreneurial concerns, it’s a good idea to discuss your specific business needs with your agent. Here are some basics you’ll cover before moving on to more nuanced principles:
Simply put, the cost of insurance will depend on what your business does and to what extent. Depending on the type of business you run, you may need to purchase several different types of additional coverage (i.e. if your business has commercial vehicles, you will need to purchase commercial auto insurance).
While there isn’t really an average cost of business liability insurance for both small and large businesses, we can consider some sample scenarios.
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Comparing policy rates on your own can be complicated and requires a lot of thought. This is where our agent steps in to save the day. They will know everything to consider when comparing rates.
An independent insurance agent can make your business life much easier. Because they are not tied to one insurance company, they are free to shop, compare and assemble all the pieces of the insurance puzzle for you.
We know what you want – a quick and easy business insurance quote in under a minute. We understand, you want to know the details, A-SAP. However, choosing supersonic speeds may mean sacrificing accuracy, which could cost you.
Online companies may omit options that will save you some money, conveniently leaving behind factors that assume greater risk and calculate a more expensive policy.
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Additionally, our competitors may also sell your valuable information to multiple companies, which may lead to many unwanted voicemails from unknown numbers. We’ve grabbed the mic and turned it over to YOU, providing information and options to connect with an independent insurance agent when you’re ready. Business owners and operators often confuse general liability insurance with professional liability insurance, asking why they need coverage for either, or in some cases, both.
If you’re curious about the difference between general liability insurance and professional liability insurance, read on to learn the nuances of each, their similarities, and their differences.
General liability insurance is a type of policy that protects your business against claims for personal injury that occurs on a commercial premises or while using a product; damage to the plaintiff’s property; or damages caused by slander, libel, copyright infringement or otherwise.
Most businesses need general liability insurance, given the wide range of exposures the policy covers. In fact, it is estimated that 40 percent