What is Covered by a Commercial General Liability Insurance Policy?

Commercial general liability insurance provides a crucial safety net in the fast-paced world of business, where risk management is paramount. This is true whether you’re a small startup or a large corporation, because unforeseen events can occur anytime, potentially causing financial losses or legal liabilities.

What is Commercial General Liability Insurance, and What Does it Cover?

Commercial general liability insurance is foundational to any business’s risk management strategy. It can provide coverage for a range of liabilities arising from day-to-day operations, protecting businesses from financial ruin due to lawsuits, property damage or bodily injuries. General liability insurance typically helps cover the following:

• Bodily injury and property damage—One of the primary coverages provided by commercial general liability is financial protection against claims of bodily injury or property damage caused by your business operations, products or services.

• Personal and advertising injury—This can include cases of defamation (slander or libel), copyright infringement and false advertising. If your business inadvertently damages another entity’s reputation or violates intellectual property rights, general liability insurance can help cover legal defense costs and potential settlements.

• Legal defense costs—In the event of a lawsuit, general liability insurance can typically cover the costs of legal defense, including attorney fees, court fees and settlements or judgments, up to the policy limits. This aspect of coverage is crucial, as legal proceedings can be financially draining even if your business is not found liable.

• Medical payments—Many general liability policies include coverage for medical costs, which can help cover the medical expenses of individuals injured on your premises, regardless of fault. This coverage can help mitigate the need for lawsuits and foster goodwill with customers or visitors.

• Additional coverages—Depending on the specific policy and endorsements chosen, general liability insurance may offer additional coverages such as liquor liability (for businesses that serve alcohol), tenant’s liability (for rented premises) and fire legal liability (for damage to leased premises due to fire).

It’s important to note that while commercial general liability insurance offers broad coverage, it may not protect against all types of risks. Businesses with specific needs or higher exposure to certain risks may require additional insurance policies, such as professional liability insurance or cyber liability insurance.

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Contact Plemons Insurance Agency to discuss your business insurance needs. We can tailor an insurance policy to your specific operations.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.