Commercial General Liability Insurance

CGL insurance protects your business from financial loss due to third-party claims and lawsuits. It covers legal defense costs, settlements, and judgments.

Bodily injury coverage includes claims from third parties who are physically injured due to your business operations, such as slip-and-fall accidents.

Property damage coverage pays for claims involving damage to someone else’s property caused by your business operations.

Personal and advertising injury covers claims for non-physical harm, such as defamation, copyright infringement, false arrest, or invasion of privacy caused by your business’s advertising or communications.

This coverage protects your business from claims related to products or services after they have been sold or completed, such as a defect causing harm after delivery.

While not legally mandatory for all businesses, many clients, vendors, and contracts require CGL insurance as a condition of doing business.

No, employee injuries are generally covered under workers’ compensation insurance, not CGL insurance.

Yes, many contractors are required to carry CGL insurance to protect against liabilities from third-party bodily injury or property damage during construction projects.

“Occurrence” refers to an accident or event that results in bodily injury or property damage that triggers coverage under the CGL policy.

The occurrence limit is the maximum amount the insurer will pay for a single claim or event.

The aggregate limit is the maximum amount the insurer will pay for all claims during the policy period.

Yes, CGL insurance covers legal defense costs for covered claims, including attorney fees, court costs, and settlements.

In most cases, defense costs are included within the policy limits, meaning they reduce the available amount for settlements or judgments.

Supplementary payments cover additional legal costs, such as court fees and bond premiums, that are above and beyond the policy’s liability limits.

Yes, you can typically request an increase in coverage limits by contacting your insurer, although this may increase your premium.

A COI is a document issued by your insurer that proves your business has CGL insurance and lists key policy details, such as coverage limits.

CGL insurance can be extended to cover multiple locations, ensuring your business is protected no matter where you operate.

Some CGL policies have a deductible, which is the amount the insured must pay out-of-pocket before the insurer begins covering claims.

Yes, CGL insurance can be tailored with industry-specific add-ons and endorsements to cover risks unique to your business.

Yes, CGL typically includes coverage for damage to premises rented by your business, particularly for fire or explosion.

No, contract disputes are not covered under CGL insurance. Coverage for contractual disputes requires specific legal or contract liability insurance.

Yes, personal and advertising injury coverage includes claims for slander, defamation, and copyright infringement in your advertising.

Tenants’ legal liability covers damage to rented premises caused by your business operations, such as fire or water damage.

Cyber liability is not covered under standard CGL policies but can be added as an endorsement for protection against data breaches and cyberattacks.

Products liability covers claims related to bodily injury or property damage caused by a product your business manufactures, distributes, or sells.

Completed operations covers claims for bodily injury or property damage arising from work or services your business has completed.

Punitive damages, which are meant to punish the defendant, are typically excluded from CGL policies.

No, vehicle-related accidents are covered under commercial auto insurance, not CGL insurance.

An additional insured is a person or entity added to your policy, extending your CGL coverage to protect them from liabilities related to your business operations.

Common exclusions include employee injuries, pollution, intentional acts, professional services, product recalls, and damage to your own property.

No, professional liability or errors & omissions insurance (E&O) is required to cover claims related to professional mistakes or negligence.

Pollution is typically excluded from CGL policies, but you can add pollution liability coverage to protect against environmental claims.

No, workers’ compensation claims are not covered under CGL insurance. These require a separate workers’ compensation policy.

CGL insurance may cover certain claims, such as copyright infringement, under advertising injury, but broader intellectual property disputes often require separate IP insurance.

No, intentional acts, fraud, or criminal activities are not covered under CGL insurance.

No, CGL does not cover the costs of recalling defective products, but you can add a product recall endorsement for that specific coverage.

No, civil or criminal fines and penalties are excluded from CGL policies.

No, CGL insurance only covers damage to third-party property. Damage to your business property is covered by property insurance.

Contractual liability is when your business assumes responsibility for another party’s liability under a contract. Standard CGL policies may provide limited coverage for this.

A waiver of subrogation prevents your insurer from seeking reimbursement from a third party after paying a claim.

Cyber liability insurance covers data breaches and cyberattacks. It is typically an add-on endorsement to a CGL policy.

Employers’ liability insurance provides coverage for employee injury claims that aren’t covered under workers’ compensation. It can be added to your CGL policy.

Liquor liability insurance covers businesses that serve alcohol, protecting them from claims arising from intoxicated patrons.

Yes, pollution liability coverage can be added to your CGL policy to protect against environmental claims.

It is an extension that covers claims for bodily injury or property damage caused by products or services after they have been completed or sold.

This covers liabilities assumed under a business contract, such as a lease or service agreement, and can be added to your CGL policy.

Product recall insurance covers the cost of recalling defective products from the market. It is an optional add-on to CGL insurance.

Additional insured coverage extends protection to other parties involved with your business, such as clients or landlords.

– Tenants’ legal liability provides coverage for damage caused by the insured to rented premises due to fire, water, or other perils.

You must notify your insurer as soon as a potential claim occurs, provide documentation of the incident, and cooperate with the insurer’s investigation.

Claims should be reported as soon as possible, ideally immediately after an incident occurs, as delays can affect coverage.

Filing a claim may lead to higher premiums during your policy renewal, depending on the nature and frequency of claims.

The time to settle a claim varies based on the complexity of the claim, the investigation, and whether the claim goes to court.

You will need details of the incident, evidence such as photos or videos, contact information of witnesses, and any related legal documents or reports.

If a lawsuit is filed, your insurer will provide legal defense and cover associated costs, subject to the terms of your policy.

Your insurer appoints and pays for legal defense on your behalf for covered claims.

If a claim exceeds your policy limits, you are responsible for the remaining balance after your insurer pays up to the policy limit.

In most cases, insurers have the right to settle claims on your behalf, but they usually consult with you during the process.

Immediately notify your insurer and provide them with all documentation related to the lawsuit.

The cost of CGL insurance depends on factors like your business size, industry, location, claims history, and coverage limits.

Business operations, industry risks, claims history, location, and the amount of coverage needed all affect premiums.

Yes, CGL insurance premiums are generally considered a business expense and are tax-deductible.

You can lower premiums by improving risk management, opting for higher deductibles, or bundling policies with the same insurer.

Yes, a higher deductible typically results in lower premiums, as you agree to pay more out-of-pocket before the insurer covers claims.

Yes, many insurers offer package deals that combine CGL insurance with property, auto, or workers’ compensation coverage, which can reduce costs.

Many insurers allow businesses to pay premiums in monthly or quarterly installments instead of one lump sum.

Your premiums may increase after a claim, particularly if the claim is large or part of a trend of frequent claims.

Adding additional insureds can slightly increase your premium, as it expands the scope of your coverage.

You can request a quote from insurers or brokers by providing details about your business operations, industry, location, and desired coverage limits.

While CGL is not legally required for all businesses, certain industries and contracts may mandate CGL coverage.

Your insurer typically provides legal defense, but you can consult your own lawyer, although costs may not be covered by the policy.

You are obligated to promptly report incidents, cooperate with the insurer’s investigation, and refrain from making voluntary payments without the insurer’s consent.

Subrogation is the insurer’s right to recover costs from third parties responsible for a loss after they’ve paid the claim on your behalf.

Cross-liability coverage allows one insured party to claim against another insured under the same policy, often used in joint ventures or partnerships.

Yes, most policies allow you to cancel at any time, but cancellation may result in a refund based on the insurer’s short-rate cancellation policy.

Delays in reporting claims can result in denial of coverage, as timely notification is a key requirement of most CGL policies.

If your insurer denies a claim, you can appeal the decision, seek mediation, or file a lawsuit to resolve the dispute.

CGL policies are typically issued for one year, with the option to renew annually.

You can switch insurers, but you should ensure continuous coverage to avoid gaps that could leave you vulnerable to claims.

Some CGL policies can be extended to provide worldwide coverage, but you should verify the specific territories included in your policy.

A discovery period allows claims to be reported after the policy ends, as long as the incident occurred during the policy term.

Yes, CGL covers claims arising from business operations conducted offsite, such as at a client’s location or during a work project.

Yes, CGL insurance is available for online businesses, particularly for liabilities related to advertising, product sales, or third-party injuries.

An occurrence policy covers incidents that happen during the policy period, regardless of when the claim is filed. A claims-made policy covers claims made during the policy period, even if the incident occurred earlier.

Retroactive coverage applies to claims made for incidents that occurred before the policy start date, as long as the claims are filed during the policy period.

Yes, retroactive coverage can often be added to claims-made policies, covering claims for past incidents not previously insured.

Yes, CGL insurance can cover claims arising from events like conferences, fairs, or trade shows your business participates in.

Territorial limits define the geographic area where your CGL insurance provides coverage. If you operate internationally, check for worldwide coverage options.

Yes, you can extend coverage to contractors, temporary workers, or subcontractors by adding them as additional insureds.

CGL covers bodily injury, property damage, and personal/advertising injury, while professional liability (E&O) covers claims of negligence, errors, or omissions in professional services.

An endorsement modifies your policy to provide additional coverage or adjust terms to better suit your business needs.

A blanket additional insured endorsement automatically extends coverage to certain parties with whom your business has contractual relationships, without requiring individual endorsements.

Tail coverage allows you to extend the reporting period of a claims-made policy for claims filed after the policy expires.

Yes, depending on your insurer, you may be able to cover multiple businesses or locations under a single CGL policy.

A risk assessment is an evaluation performed by the insurer to determine your business’s liability risks and calculate appropriate coverage and premiums.

No, CGL insurance does not cover breach of contract claims. You would need separate contract liability coverage for these claims.

A loss run report is a detailed claims history report provided by your insurer, used to assess your risk profile and calculate premiums.

Insurers cannot typically cancel a policy solely because of a claim, but non-payment of premiums, fraud, or misrepresentation could result in cancellation.

How often should I review my CGL policy?

– It’s recommended to review your CGL policy annually, especially if your business grows, changes operations, or enters new markets.