Define: Commercial General Liability Policy

A Commercial General Liability (CGL) policy is a type of insurance policy that provides coverage for businesses against claims of bodily injury, property damage, and personal and advertising injury. It helps protect businesses from financial losses resulting from lawsuits or legal claims.

A CGL policy typically covers a wide range of liabilities, including bodily injury, property damage, personal and advertising injury, medical payments, and legal defence costs. It provides coverage for accidents or incidents that occur on the business premises or as a result of business operations.

While not all businesses are legally required to have a CGL policy, it is highly recommended for most businesses. Many commercial leases and contracts may also require businesses to have this type of insurance coverage.

Yes, CGL policies can be customized to suit the specific needs of a business. Additional coverage options, such as product liability or professional liability, can be added to the policy based on the nature of the business and its potential risks.

Occurrence-based coverage provides coverage for incidents that occur during the policy period, regardless of when the claim is made. Claims-made coverage, on the other hand, covers claims made during the policy period for incidents that occurred after a specified retroactive date.

Yes, CGL policies typically have certain exclusions, such as intentional acts, professional errors, pollution, and certain types of contractual liabilities. It is important to review the policy carefully to understand the specific exclusions that may apply.

Yes, a CGL policy can provide coverage for damages caused by faulty products through product liability coverage. However, businesses involved in manufacturing or selling products may need additional product liability insurance to adequately protect against such risks.

No, a CGL policy does not typically cover damages caused by cyber incidents, such as data breaches or cyberattacks. Businesses may need to consider purchasing separate cyber liability insurance to protect against these risks.

Determining the appropriate coverage limits for a CGL policy depends on various factors, including the size and nature of the business, its potential risks, and any contractual requirements. It is advisable to consult with an insurance professional who can assess your specific needs and recommend suitable coverage limits.