Commercial General Liability

Commercial general liability (CGL) is a type of insurance coverage that provides protection to businesses against financial loss resulting from liability claims for bodily injury or property damage caused to third parties. It is one of the most common types of insurance policies purchased by businesses to protect themselves from potential lawsuits and legal expenses.

Here are some key points to help explain commercial general liability insurance:

Coverage Scope: CGL policies typically covers a wide range of incidents, such as slip and fall accidents on business premises, product liability claims, advertising injuries (e.g., defamation or copyright infringement), and damage to third-party property caused by the insured's operations.

Bodily Injury Coverage: This aspect of CGL insurance addresses claims arising from physical harm or injuries sustained by individuals other than employees of the insured business. For example, if a customer slips and falls in a retail store, resulting in injury, the CGL policy may cover medical expenses, legal costs, and any potential settlement or judgment.

Property Damage Coverage: CGL policies also provide coverage for damage to third-party property caused by the insured's business operations. This could include instances where a contractor accidentally damages a client's property during construction work.
Legal Defense Costs: In addition to covering the cost of settlements or judgments, a CGL policy typically includes provisions for legal defense costs. This can involve hiring lawyers, conducting investigations, and covering court expenses related to defending against covered claims, regardless of their validity.

Exclusions and Limitations: CGL policies have certain exclusions and limitations that define what is not covered. These may include intentional acts, professional errors or omissions (which may require separate professional liability insurance), employee injuries (covered by workers' compensation insurance), and damage to the insured's own property.

Policy Limits and Deductibles: CGL policies have coverage limits, which represent the maximum amount the insurance company will pay for covered claims. The policyholder typically selects these limits based on their assessment of potential risks. Deductibles are the amount the insured must pay out of pocket before the insurance coverage kicks in.

Liability insurance policies can vary widely in terms of coverage, limits, and exclusions. Contact Haldimand Insurance Brokers and let an experienced professional work with you to assess your specific liability needs and find the right insurance policy that provides adequate coverage.