How Does Commercial General Liability Insurance Work?
When it comes to running our businesses, the majority of us try to be careful and make sure everyone involved is doing everything safely and honestly. Unfortunately, no matter how hard we try to do the right thing, you may face at least one lawsuit during the time you’re running your business. One lawsuit can really harm, or even ruin a business. Commercial general liability insurance is designed for just this type of situation – and here’s what you need to know about it.
What is Commercial General Liability Insurance?
Commercial general liability, or CGL, is a type of insurance that will protect your business when a third-party claims that they have been injured by your business and sues for damages. The injury can be related to a physical injury, damaged property, or harm to a reputation.
What does Commercial General Liability Insurance Cover?
Commercial general liability insurance will cover you when your company is being sued by someone else. It doesn’t matter if the lawsuit goes to court or if there is a settlement reached. The insurance is in place to pay both the damage and all related legal fees.
It’s also important to note what this policy does not cover. If your company produces or sells a product that causes injury or damage, this policy does not cover the liability for that. In this case, you will need to purchase an additional type of insurance called product liability insurance.
Why Do You Need This Insurance for Your Commercial Business?
Almost every other business your company deals with will insist that you have CGL insurance before they work with you. If you’re renting a space for your office or business, then it will protect the landlord from any damages you may cause to the property while you’re renting it. If you are working on a job site at a client’s space, then it also protects your client from any injuries or damages that could occur.
How Much Does It Cost to Get Your Business Insured?
The amount you will pay in premiums depends on the size and type of business. If you have a business in an industry with more risks than usual, you may pay higher than average premiums.
Some businesses pay as little as $500/year to protect themselves from lawsuits and financial ruin. However, it really is done on a case-by-case basis.
If you need to look into commercial general liability insurance for your business, then it’s important to reach out to your insurance broker and talk to them about what your options are.
There may be assessments or documents you need to complete before you can qualify for the insurance, but all of this will be covered when you talk to your broker about getting the insurance you need.
Protecting your business from major lawsuits or financial ruin is critical. You’ve worked hard to build and protect your business, so don’t let an injury or lawsuit take all that hard work away from you.
Contact ICD Insurance
Contact us today to speak with one of our brokers about commercial general liability insurance for your business.