What is covered under a commercial general liability policy?

Commercial general liability (CGL) insurance policies are essential for businesses of all sizes, providing coverage for a wide range of risks. Understanding what is covered under a commercial general liability policy is crucial for business owners to protect themselves from potential liabilities and financial losses. Let’s dive into the details.

What does a commercial general liability policy cover?

A commercial general liability policy typically covers the following:

1.

Bodily injury and property damage

This coverage protects your business in case someone is injured or their property is damaged due to your business operations or premises.

2.

Product liability

Product liability coverage comes into play when someone suffers harm or injury due to a product your business manufactures or sells.

3.

Completed operations

This coverage provides protection for any injury or damage that occurs after your business has completed work or provided a service.

4.

Advertising and personal injury

CGL policies usually cover claims related to advertising injuries such as slander, libel, defamation, or copyright infringement.

5.

Legal defense costs

A CGL policy typically includes coverage for legal expenses associated with defending against covered claims, even if they are groundless or false.

6.

Medical expenses

If someone sustains minor injuries on your premises, a CGL policy can cover their medical expenses, regardless of liability.

Additional Frequently Asked Questions (FAQs)

Now, let’s address some common FAQs related to commercial general liability policies:

1.

Is damage to my own property covered under a CGL policy?

No, a CGL policy does not cover damage to your own property. It only covers damage to others’ property.

2.

Does a CGL policy cover professional errors or omissions?

No, professional errors or omissions are typically covered under professional liability insurance, not a CGL policy.

3.

What if an employee is injured on the job?

Employee injuries are generally covered by workers’ compensation insurance, not a CGL policy.

4.

Does a CGL policy cover damage caused by cyber-attacks?

No, cyber-related damages are usually covered under specialized cyber liability insurance, not a CGL policy.

5.

Is damage caused by faulty workmanship covered?

No, faulty workmanship is not typically covered by a CGL policy. It may require additional coverage, such as a contractor’s professional liability policy.

6.

Does a CGL policy cover punitive damages?

In most cases, CGL policies do not cover punitive damages, which are intended to punish the liable party rather than compensate the victim.

7.

Are employees covered under a CGL policy?

No, employees are not covered under a CGL policy. They are typically covered under workers’ compensation and employer’s liability insurance.

8.

Do CGL policies cover intentional acts?

CGL policies generally do not cover intentional acts committed by the insured or their employees. Coverage is usually limited to accidental or unintentional acts.

9.

Can I add additional coverage to my CGL policy?

Yes, you can often customize your CGL policy by adding endorsements or purchasing additional coverage, such as liquor liability or pollution liability.

10.

Does a CGL policy cover claims made during the policy period only?

Yes, a CGL policy generally covers claims made and reported during the policy period. Claims reported after the policy has expired may not be covered.

11.

Is advertising injury covered under a CGL policy?

Yes, advertising injury, including claims of slander, libel, defamation, or copyright infringement, is typically covered under a CGL policy.

12.

Are there any exclusions to CGL coverage?

Yes, there are certain exclusions in a CGL policy, such as intentional acts, professional services, employee injuries, and pollution-related claims. Reviewing your policy is crucial to understanding specific exclusions.

In conclusion, a commercial general liability policy covers bodily injury, property damage, product liability, completed operations, advertising and personal injury, legal defense costs, and medical expenses. However, it’s important to carefully review your policy and consider additional coverage options to ensure comprehensive protection for your business.

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