There are many things that can go wrong when running a business. Natural disasters, employee mistakes or mishaps, the loss of goods, and lawsuits can affect any company in just about any location. Even cautious business owners who take measures to prevent problems can’t avoid them altogether. The good news is that commercial liability coverage (CGL) can take much of the risk out of running a business. It provides comprehensive coverage and compensation to ensure a business can operate successfully in spite of adverse circumstances, mistakes, or lawsuits.
What is Commercial General Liability Insurance?
Commercial general liability insurance has three main parts. These are premises liability, product liability, and completed operations.
Premises liability covers accidents that happen on a company’s property. It covers customers, business partners, delivery people, and contractors. If someone in one of the above groups has an accident on-site, premises liability will cover medical bills, the cost of settling a lawsuit, and other related expenses. However, this form of insurance does not cover employees. Employee coverage is provided by a worker’s compensation policy.
CGL also provides product liability coverage. Any business that manufactures, sells, or distributes goods needs this policy. Construction companies in some states may also be required to have this type of insurance. If a customer claims that a product sold or distributed by the business has damaged property and/or caused an injury or death, product liability coverage will cover the legal costs a business incurs to resolve the matter. These costs include legal fees, settlements, compensatory and punitive damages, and economic damage to the business. It also covers medical costs for the injured party.
Completed operations insurance covers injury or damage that occurs after a project has been completed. If a business or contractor makes a mistake when building or fixing something and the mistake causes property damage or an injury, completed operations insurance will cover legal and medical costs. For example, if a plumber makes a mistake when doing repairs and the house floods as a result, the plumber’s legal expenses and the cost of settling a lawsuit would be covered under completed operation insurance. This policy is widely used in the construction industry, but other companies may need it as well.
What Isn’t Covered by Commercial General Liability Insurance?
CGL coverage is comprehensive. However, there are limits on coverage for legal expenses and settlements. The limit varies depending on the insurance company a business works with, which is why it’s important to do careful research before choosing an insurance company. The deductible set by the policyholder will also determine how much compensation the business will receive. Raising the deductible can lower monthly costs but prove costly if the business faces a hefty lawsuit.
Additionally, commercial general liability insurance doesn’t cover every problem a business owner could face. While every business should have adequate CGL coverage, business owners should also purchase other forms of commercial coverage to ensure the business has complete protection. The type of coverage a business would need varies depending on location, industry, and other factors. Companies that store customer data will need cybersecurity insurance to provide coverage if there is a data breach. Businesses that deliver goods or provide on-site services to customers will need commercial auto insurance. Flood, earthquake, and hurricane insurance are important if a business is located in a city that is prone to certain types of natural disasters.
Why Grand Mutual Insurance?
Grand Mutual is a leading commercial general liability insurance coverage provider. The firm is financially stable, offers top-tier customer service, and provides speedy compensation for all valid claims. It offers flexible coverage to meet the needs of growing businesses and businesses that expand or diversify their offerings. Furthermore, Grand Mutual provides not only liability coverage but also many other forms of business insurance. This enables a business to bundle two or more policies to save money.
Reliable CGL coverage gives a business owner the peace of mind that comes from knowing a business is secure even if an accident happens or problems arise with a product or service. Those who are looking for reliable coverage that will meet both current and long-term needs will find that Grand Mutual can not only meet but even exceed expectations. Get in touch to learn more about our policies or to start the process of finding the policy that is the best fit for your company.