What Does General Liability Insurance Cover and What Doesn't It Cover?

Having a commercial general liability (CGL) policy is essential for any business, as it safeguards them from financial losses if they are held responsible for property damage or personal and commercial injuries caused by their services, business operations or their employees. This type of coverage provides owners, managers and developers of industrial, commercial and agricultural properties with a wide range of pollution liability protection for gradual, sudden and accidental environmental liabilities, their own and those of others. It is important to understand the coverage provided by a CGL policy and to work closely with an insurance provider who knows your specific business and risks. CGL policies generally cover the costs of your legal defense and will pay for all damages on your behalf if you are found responsible up to the limits of your policy. This coverage includes payments for injuries suffered by a person other than an employee caused by an accident that occurs on the insured's premises or when exposed to the insured's business operations.

Medical payment coverage can be activated without the need for legal action, allowing for the prompt resolution of minor medical claims without litigation. It pays for all necessary and reasonable medical, surgical, ambulance, hospital, professional nursing and funeral expenses of a person injured or killed in an accident that occurs on the insured's premises or that results from business operations. However, CGL policies do not cover all the possible risks your business may face. Workers' compensation insurance and workplace liability insurance are excluded, but can be purchased as separate policies. Liability insurance for directors and officers protects past, present and future directors and officers of for-profit or not-for-profit companies from damages resulting from alleged or actual wrongful acts they may have committed in their positions.

If your general liability, BOP, or CPP policy doesn't offer enough coverage, you may want to consider purchasing a commercial franchise (general) policy, which will provide you with additional protection. In conclusion, it is important to understand what is covered by a general commercial liability policy in order to manage the risks of CGL. While it provides comprehensive business insurance, it does not cover workers' compensation insurance or workplace liability insurance. If you need additional protection beyond what is offered in your CGL policy, you may want to consider purchasing a commercial franchise (general) policy.

Carl Somilleda
Carl Somilleda

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