A Commercial General Liability policy (CGL) is a comprehensive insurance product that companies buy to protect themselves in case of losses such as fire, water damage, acts of nature, bodily injury, and damage to property or criminal activity. Purchasing this policy is the first step businesses take to protect their assets. This safety net is critical in a society in which the number of lawsuits and the value of judgment awards have increased over the years.
The CGL is subdivided into 3 sections - Coverage A, Coverage B and Coverage C.
Coverage A - Bodily Injury & Property Damage.
This section of the policy agrees to cover the costs the insured becomes legally obligated to pay due to property damage, bodily injury and products/completed operations. It will also cover all costs incurred to defend the insured against any/all claims that allege such damages. This section offers a wide range of coverage that protects the premises and the product. However, there are also many exclusions that are standard throughout most industries. Most common exclusions as follows:
Aircraft, auto, Watercraft Pollution Workers compensation Expected or Intended injury Recall of Products/work
There are 2 types of limits that coverage A defines.
Occurrence Limit - the limit insurer will pay for all damages resulting from bodily injury or Property damage from a SINGLE Occurrence
Aggregate Limit - the limit the insurer will pay for ALL claims during the policy period
Coverage B - Liability for Personal & Advertising Injury
Under this section of coverage, the insurer agrees to pay for damages as a result of personal and advertising injury. Examples of this coverage include libel, slander, copyright infringement, false arrest, using others advertising ideas and or slogans. The limit of liability is most often the same limit as the occurrence limit as per Section A.
Coverage C - Medical payments
This section of the policy covers medical expenses the insured is legally obligated to pay in case any person (other than insured) that is injured on the insured's premises or as a result of the insured's operations. It is important to note that this limit is just a small fraction of the limits provided in sections A & B. Atypical Medical expense limit is $5,000 on most traditional policies. This limit can be increased by way of a special agreement/endorsement with the insurance company.
By having a CGL in place, companies can relax knowing that they can conduct business without having to worry about a claim and how it will be handled. If a claim is filed against an insured business, the insurance company will conduct a thorough investigation to eliminate any claims that are proven to be unjust. Legal fees, including court costs, are covered under the policy. If the business is found liable and the incident is covered under the policy, their insurance company would pay the award amount up to the coverage limit purchased by the insured.
When considering business insurance coverage, one should consider the following:
The coverage limits of the policy that will cover exposures related to your business Coverage should be customized to your unique business needs Additional policies or endorsements may be required to cover specific business activities and needs How To Find The Best Priced Commercial Auto Insurance Policies What Is Public Liability Insurance and How You Can Have It Facts About Fleet Motor Insurance Ways to Reduce Risk Sharing Expenses Protect Your Business With Public and Product Liability Insurance Vacant Property Insurance
0 comments:
Post a Comment