How to protect Your Small Business with Commercial General Liability Insurance: A Comprehensive Guide
What is Commercial General Liability Insurance
Starting a business can be exciting, but it also comes with its own set of challenges and risks. No matter how well you prepare, there is always a chance that something could go wrong, and if it does, it could result in costly lawsuits and damages. For example, if you are a contractor, whether you install ceilings, floors, or anything in between, an accident could lead to a devastating lawsuit. We help installers secure policies that match your unique risks. This is where commercial general liability insurance comes in.
Commercial General Liability (CGL) Insurance is a type of insurance that is designed to protect businesses from financial losses that arise from bodily injury, property damage, and other types of liabilities. Examples include slip and fall accidents, product liability insurance, etc. It is a comprehensive policy that covers a wide range of potential risks that businesses may face. In this blog, we will take a closer look at commercial general liability insurance and what it entails.
What does commercial General Liability Insurance cover?
Commercial General Liability Insurance covers four types of claims:
Bodily Injury: This type of coverage is designed to protect the business from claims made by individuals who have been injured on the business premises. For example, if a customer slips and falls in a retail store, the business owner can file a claim for damages under this coverage.
Property Damage: Property damage coverage is designed to protect the business from claims made by individuals who have suffered property damage because of the business operations. For example, if a construction company damages a neighboring property while working on a project, the business can file a claim for damages under this coverage.
Personal and Advertising Injury: This type of coverage is designed to protect the business from claims made by individuals who have suffered personal or advertising injury because of the business operations. For example, if a company’s advertising campaign results in a defamation claim, e.g., by a competitor, the business can file a claim for damages under this coverage.
Medical Payments: Medical payments coverage is designed to cover the medical expenses of individuals who have been injured on the business premises. This type of coverage is usually limited in amount and is intended to cover minor injuries only.
While Commercial General Liability Insurance (CGL) provides comprehensive coverage for businesses, it is important to note that there are certain exclusions to the policy. Some of the most common exclusions include:
Intentional Acts: CGL insurance does not cover intentional acts committed by the business owner or employees.
Professional Services: CGL insurance does not cover claims arising from professional services provided by the business. For example, if a doctor is sued for medical malpractice, the claim would not be covered under CGL insurance.
Employee Injuries: CGL insurance does not cover injuries sustained by employees while on the job. For this, businesses need to obtain Workers’ Compensation insurance.
Contractual Obligations: CGL insurance does not cover claims arising from contractual obligations, such as breach of contract.
Commercial General Liability Insurance Cost
The cost of commercial General Liability Insurance varies depending on a number of factors, including the size of the business, the nature of the business operations, and the location of the business. Generally, small businesses can expect to pay anywhere from $500 to $1,500 per year for CGL insurance, while larger businesses may pay upwards of $10,000 per year.
In conclusion, general liability insurance is a crucial aspect of protecting your business from financial damages caused by unexpected accidents or incidents. It provides coverage for third-party claims related to bodily injury, property damage, and other liabilities that could arise during the course of your business operations.
General liability insurance is MANDATORY for all contractors in every State. We have over 30 years of experience doing commercial business in the State of Florida. Our expertise is insurance for contractors and their businesses.
However, it's important to carefully review your policy and ensure that you have the appropriate coverage for your business needs.
Now that you understand the basics of general liability insurance, the question is: Is your business adequately protected? If not, it's time to consider getting general liability insurance and taking steps to safeguard your business from potential risks and lawsuits. Remember, it only takes one incident to cause significant financial damage to your business, so it's better to be safe than sorry.
Feel free to reach out to us with questions about commercial General Liability Insurance coverage at email@example.com. You can also call us at 954-493-1690 and get a Live Quote and an Insurance Certificate within 10 minutes.