Most commercial business owners understand the need to protect their business assets from the possibility of lawsuits arising in the course of normal business operations. One of several insurances carried by business owners is General Liability coverage, which protects a company from tort actions.
Standard policies, issued as a Commercial General Liability (CGL) Coverage Form, are the standard document issued by the Insurance Service Office (ISO).
This policy covers Bodily Injury and Property Damage caused to 3rd parties, but excludes the owner or employees of a company.
The insuring agreement states, we (the insurance company), will pay those sums that the insured (business owner) becomes legally obligated to pay as damaged because of Bodily Injury or Property Damage to which the insurance applies.
- Preselected Limits of Coverage – Each policy has preselected limits of coverage. The higher the limits elected the higher the premiums charged.
- Duty to Defend- the policy states that the carrier has a duty to defend the policyholder in the event a claim is brought against the policyholder.
- Coverage Territory – The Bodily Injury and/or Property Damage must be caused by an occurrence that takes place in the coverage territory during the policy period.
CGL policies have several exclusions:
- Bodily Injury and Property Damage that is intended
- Liquor Liability – Policyholders are not covered when guilty of contributing to the intoxication of another
- Workers’ Compensation and Employer’s Liability
- Watercraft or aircraft
- Mobile Equipment
- Personal Property of the policyholder
- Damage to your work or product
- Product recalls
The carrier will pay those sums the insured becomes legally obligated to pay as damages because of personal injury or advertising injury.
- Personal Injury – Includes but is not limited to: false arrest, detention, malicious prosecution, wrongful eviction, wrongful entry, slander, libel.
- Advertising Liability – Oral or written publications of material that slanders or libels a person or organization, violates a person’s rights to privacy, misappropriation of ideas, copyright infringement.
Your insurance will pay medical expenses for bodily injury caused by an accident on premises you own or rent because of operations your company performs.
- The event must occur within the coverage territory and be reported within one year of the date of accident. These payments are No–Fault -that is fault does not have to be proven. Also paid are ambulance ride, first aid cot and medical bills.
The carrier will pay all expenses we incur to investigate a suit for bail bonds, release attachments, taxes against the insured for the suit, and prejudgment interest. This coverage is afforded to the policyholder, their spouse, business partners, a Limited Liability Company, and employees for acts performed within the scope of their employment.