What is Commercial General Liability Insurance?

One of the most crucial policies to consider for any business is Commercial General Liability insurance. An accident involving a customer, vendor, or any other third party engaged with your business is a possibility. Even a minor slip and fall on the property can be disastrous, culminating in a lawsuit. The Commercial General Liability Insurance policy will protect businesses against any legal liabilities that may arise as a result of bodily injury or property damage sustained as a result of their operations. Commercial General Liability insurance protects companies from third-party claims and lawsuits. It is divided into three categories.

Liability for Personal Injury and Property Damage

This coverage under Commercial General Liability insurance relates to bodily injury or property damage claims or actions. It includes claims alleging a company’s carelessness as a result of an accident that resulted in bodily harm or property destruction to the claimant. Under a Commercial General Liability policy, this coverage is very broad, and it includes everything:

1. Premises Liability: This insurance protects you against bodily harm or property damage that occurs on your property as a result of your negligence. For example, suppose a customer has an accident on your property and injures his leg.
2. Activities Liability: This coverage protects you from bodily harm or property damage resulting from operations you perform off-site. For example, let’s say you’re installing equipment at a customer’s location and one of your employees inadvertently causes bodily harm or property damage to the customer’s property or a third-party on the premises.
3. Liability for Contractor Acts: This coverage protects you from being held liable for the negligence of independent contractors you hire.
4. Product Liability: This insurance protects you from third-party claims that a product you manufactured or sold was defective and caused personal harm or property damage.

Personal and Advertising Injury Liability

Personal and Advertising Injury coverage covers financial injury instead of physical injury, which is covered under the Commercial General Liability insurance’s Bodily Injury and Property Damage clause. Libel, defamation, and false arrest are examples of covered offences. Certain violations committed by enterprises for the purpose of advertising their business are covered under this policy.

Coverage for Medical Expenses

Third-party lawsuits are not covered under Medical Payments Coverage. Rather, it pays for medical expenditures paid by people who are harmed on your property or at a location off-site. Regardless of responsibility, these costs are reimbursed. Injured parties do not have to prove you are responsible for their injuries in order to collect payment under your insurance.

How do Commercial General Liability insurance limitations work?

1. Policy terms and conditions will restrict coverage and limit it to a specified maximum limit of coverage per event or occurrence (AOA).
2. The limit is determined by the company’s revenue, business, and type of exposure.
3. The policy limit is an “annual aggregate” (AOY), which means there is just one limit for all claims made in a given policy year.
4. This single limit includes defence and other costs.