Commercial General Liability(CGL)

Commercial general liability insurance, also known as CGL, is paid on behalf of an insured party to render services and compensate for negligence according to a law or contract. There are two ways to utilize commercial general liability insurance. It is available through an Occurrence Form, which provides liability coverage for loss or injury that happens during the policy period (regardless of the date on which the claim was reported), or through a Claims Made Form, which provides coverage only if, during the policy period, a written claim is made.

What is Liability Insurance?

This type of insurance is designed to protect policyholders from lawsuits and other claims, which is particularly important for businesses. If the policyholder is sued for claims that took place during the policy’s coverage period, they will be protected, and should be able to avoid financial peril. There are many factors to consider before purchasing commercial and professional liability insurance policies.

Deductible

The amount of loss the policyholder must pay before the insurance benefits are payable.

Sunset Clause

A provision limiting the number of years a claim can be reported.

Aggregate Limit

The maximum amount a policy will pay out for a policy period or for a specific claim(s). This limit applies to damages paid for personal injury, injury to the body, damage to property, advertising injury and medical expenses, excluding damages that are included in the products-completed operations hazard.

Per Occurrence Limit

The maximum amount the policy will pay out for each occurrence of a claim.

Advertising and Personal Injury Limits

The maximum amount the policy will pay for a claim arising from advertising or personal injury, including damages that are not physical, such as libel, slander, false arrest, etc.

Damage to Rented Premises

The policy covers damage to rented space or premises, such as office space.

Medical Payments

The commercial insurance policy covers third-party medical payments caused by the insured’s negligence.

Products-Completed Operations

The business insurance policy covers the products or workmanship after a project is completed.

Insurance that pays and renders service on behalf of the insured for loss arising out of his responsibility due to negligence, to others imposed by law or assumed by contract.

Available on an Occurrence Form (provides liability coverage only for injury or loss that occurs during the policy period, regardless of when the claim is reported), Claims Made Form (provides coverage only if a written claim is made during the policy period).

Sunset Clause (provision limiting the number of years a claim can be reported).

Components: Aggregate Limit: Commercial General Liability limit that applies to all damages paid for bodily injury, property damage, personal injury, advertising injury and medical expenses, except damages included in the products-completed operations hazard. Maximum limit that a policy will pay out for a policy period or for a claim or claims.

Per Occurrence Limit: Limit the policy will pay out per occurrence of a claim.

Products-Completed Operations: Covers the products or workmanship after the project/work is completed.

Personal and Advertising Injury: Limit the policy will pay for a claim arising from personal or advertising injury. Covers claims for damages which are other than physical such as libel, slander, false arrest, etc.

Damage to Rented Premises: Covers damage to office space or rented premises.

Medical Payments: Covers 3rd party medical payments caused by the negligence of the insured.

Deductible: The amount of loss paid by the policyholder before the insurance policy benefits become payable.