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What Is Commercial General Liability Insurance and Do I Need It for My Business?

 

Accidents happen. They can happen at home, on the street or at your place of business. However, if they happen at your business, your company could be on the hook for a big financial loss.

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That’s why commercial general liability insurance (CGL) is a must. Let’s look at what CGL is and why it’s important.

 

What is commercial general liability insurance?


CGL is a business insurance policy that protects you against financial losses if your company is found liable for personal injury (physical or mental), property damage and more. If you’re a business owner, this type of insurance policy will protect you from losses that could result from property damage or personal injury caused by your services, products or employees.

 

Why is commercial general liability insurance important?


Commercial general liability insurance will cover your legal fees and all damages if your business is found liable (up to the limit of the policy). Here are three examples of situations where you CGL can protect you:

 

1. A customer slips and falls in your store because an employee just finished mopping and neglected to put up any warning or danger signs. The customer breaks her ankle and requires medical care and can’t work, so she sues your business.

 

2. An employee conducting a plumbing service call makes a mistake and ends up flooding the customer’s home, causing tens of thousands of dollars in damage. The customer feels your company is responsible and launches a lawsuit.

 

3. An individual or group files a lawsuit against your company alleging your advertisements are misleading the public.

 

These are just some of the possible scenarios in which CGL can protect you. If any one of these situations occurs, your businesses might not survive without adequate insurance.

 

Does commercial general liability insurance cover everything?


CGL won’t protect you against all the risks your business faces. Depending on your type of business, you may want to consider adding liquor insurance or pollution insurance to your policy package. Additionally, CGL won’t protect you from sexual harassment and discrimination claims, or damages from the actions of directors and/or officers.

 

For more protection and peace of mind, consider purchasing excess liability insurance for situations in which claims exceed the limit of the policy.

 

What insurance policy is right for my business and how much do I need?


At Eisenhauer Insurance, our brokers can help you find an insurance policy that’s right for your business and will shield it from unforeseen disasters. Contact us today at our Halifax or Dartmouth location to speak to an experienced broker about how we can help you protect your business.

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