What Coverage Is Included in General Liability Insurance

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Small businesses need as much insurance as large corporations. But if you are a small business owner, then you probably have several budgetary constraints that make it essential to get coverage that is as cohesive as it is affordable. You can often get these benefits by enrolling in a business owners policy (BOP).

One of the benefits offered within most BOPs is commercial general liability (CGL) insurance. A CGL plan is designed to assist you if your mistakes harm other people, and your plan will offer numerous benefits to cover different loss scenarios.

Liability Insurance in Brief

If an incident that negatively affects a customer, vendor or other party, then it might be your responsibility to respond appropriately and help them with their recovery. However, these costs might cause a significant financial blow to your bottom line. Still, with the help of liability insurance, you will be able to have assistance meeting these financial obligations.

Coverage Within a CGL Policy

A CGL policy is the most basic form of liability insurance. It is called general liability insurance not because it is simple, but because it applies to claims that are most likely to arise in any business. Those covered often include:

Bodily Injuries: If your mistakes cause someone else to get hurt in the business, this coverage might pay for their medical bills or related recovery costs. So, if you forget to mark a wet floor and someone falls in the puddle, hurting themselves, then this coverage can compensate them for their losses.
Property Damage: The business might damage someone else’s property. For example, a carpet cleaner might apply the wrong solvent to someone’s floors, causing severe damage. This coverage can help pay to repair the damage.
Personal Injuries: Sometimes, the business’s actions might cause reputational harm to someone else. Therefore, if the person alleges you committed libel or slander against them, then this coverage can help you repay that person.

Product Injury: If you manufacture products, and these products harm a consumer, then the consumer might sue you. This benefit will provide restitution.
Completed Operations: If you provide a service to a customer, then that service might cause a problem even after you have completed your work. For example, if you are a plumber and make a mistake when installing piping for a customer, then that mistake might lead to household flooding. Because you are responsible for the customer’s loss, your completed operations coverage can pay.

All BOPs will vary, namely in the CGL coverage limits that they offer for different losses. However, it’s easy to work with your agent to choose CGL limits that are most appropriate to your individual loss potential.

Plus, though CGL policies won’t cover everything, you can still augment your plan with additional benefits that are ready to fill those openings. In either case, additional liability benefits are often essential to your business’s long-term financial security. Therefore, don’t hesitate to work with your agent to maximize your benefits.

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