What are the crucial facts to know about commercial general liability policy?

Commercial general liability policy, also called the general liability insurance (GLI), is the kind of policy that helps in protecting your business when someone sues it for causing bodily injuries or property damage. You can take this policy as a standalone insurance policy or have it bundled up as a part of the Business Owner’s Policy. GLI is actually one of the most crucial insurance policies you can have for the business. A liability claim can devastate your business. It can make you close the doors of your business for good if you do not have enough money to cover the claim.

The areas covered by the commercial general liability policy

The GLI policy helps in protecting your business in case of the following incidences:

Third-party bodily injuries: It is when someone sues the business as they got injured on the business premises. For instance, delivery personnel trips on the loose carpeting and breaks the wrist. In this case, the GLI will help you in covering the cost of the lawsuit and pay for the medical expenses of the injured person.

Third-party property damage: Third-party property damage is when one of your employees or you end up damaging the property that belongs to someone else. For instance, GLI policies can help in covering the costs when your tools somehow break the window of a neighboring business. 

Reputational damage: Your business can also get sued by someone for slander or libel. For instance, when you say anything about the product of a competitor during an interview, and they claim that you are slandering their business, commercial general liability policy can help you in covering the legal costs.

Advertising injury: Any other business in the same industry as yours might claim that your advertising looks a lot like theirs. If they claim that it is hurting their reputation and business, you can use GLI to cover the costs to resolve this claim.

The costs covered by a commercial general liability policy

If someone makes any of the aforementioned claims against your business, the GLI can help in covering the costs for:

• Settlements or judgments
• Evidence costs
• Witness fees
• Legal teams for representing your business

Keep in mind that commercial general liability policy does not cover the work-related illnesses or injuries of the employees, which the worker's compensation insurance covers. The general liability insurance will not cover the damage to your own business property. You need commercial property insurance for that.

It is important to mention in this regard that commercial general liability policy is not an insurance policy that is required by law. However, businesses still have it because they don't want to risk the expenses of a liability claim.

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Created on May 10th 2020 12:15. Viewed 291 times.

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