Commercial General Liability insurance provides coverage to a business for bodily injury, personal injury, and property damage caused by the business operations, products, or injury that can occur on the business premises. This policy covers liability exposures caused by the business operations. CGL operates as a combination of Public Liability and Product Liability policies and also offers you various supplementary covers in the standard Policy wording.
It is very comprehensive business insurance, though it does not cover all risks that a business may face. Premises/operations coverage protects against bodily injury or property damage that occurs on your premises or as a result of your business operations. Products/ completed operations coverage protects against bodily injury and property damage that occurs away from your business premises and is caused by your products or completed work. CGL policy was introduced in the 1986 with a purpose to provide coverage against liability claims for bodily injury and property damage arising out of premises, operations, products, and completed operations; and advertising and personal injury liability. The American Association of Insurance filed a revised version of CGL in the year 1996 which included the two distinct versions of CGL forms: Occurrence version and Claim-made version.
Commercial General Liability (CGL) policy covers a wide range of liability loss exposures of commercial organizations. The loss exposures come under following broad categories:
- Premises and Operation Liability Risks
- Products and completed operations Liability Risks
- Limited Contractual liability
- Personal and Advertising injury liability
- Medical payments
- Supplementary Payments
Commercial General Liability policy consists of different levels of coverage. It may include premises coverage to protect the business from claims that occur at the business including physical location during regular business operations. It may also include coverage for bodily injury and property damage as a result of finished products. You can also purchase excess liability coverage in order to cover the claims that exceed the limit of CGL policy. While purchasing commercial general liability insurance, one has to make sure that there is a differentiation between a claims made policy and an occurrence policy. A claims made policy gives protection over a specific time period, and only cover those claims which are made during that time period even if the claim event occurred at a different time. An occurrence policy provides coverage only if the claim event occurred during a specified time period. It does not cover claims that occurred before the policy came into effect. Also, in addition to commercial general business liability policies, businesses may also purchase policies that provide coverage for other business risks. E.g, the business can purchase the employment practices liabilities to protect itself from the claims like sexual harassment, wrongful termination, and discrimination. It also includes protection to cover errors and omissions made in financial reporting statements, as well as insurance that covers damages caused from the actions of the directors and officers.
Whether you need Business Insurance California, Business Insurance San Diego, or Commercial Insurance California, there are many insurance professionals that can provide you with the right coverage at a price that fits your budget.
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