What is Commercial General Liability Insurance?
General liability insurance is an affordable way to protect your business if you ever have to defend a claim against your business in court.
Business of all sizes and types should have commercial general liability insurance (sometimes called comprehensive general liability or CGL). This basic commercial insurance provides coverage for the costs associated with lawsuits placed against the company for things like; employee or public injuries, property damage caused by the business or employees, personal and advertising injuries, as well as injuries caused by the negligent action of employees.
Commercial general liability insurance is an affordable way to protect your business if you ever have to defend a claim against your business in court. With this coverage, you'll receive funds up to your policy limits to cover damages assessed by the courts to compensate third parties, and cover legal defense fees and settlement charges.
Common CGL coverage amounts
The main coverage amounts we see businesses securing are either $2 million or $5 million. Some businesses come to us looking for $1 million in commercial general liability but we find most go for $2 million once they realize the cost for both is almost always the same.
Do you have a contract requirement for CGL?
Make sure you take that into consideration but don't make that the only factor you're thinking about. Think beyond the minimum requirement. Talk to your commercial broker openly and honestly about the potential risks your business faces. Conversations about risk now can make things a lot easier down the road.
