CGL Insurance
As a business owner, protecting your company from unexpected risks is crucial. An essential coverage that you need is Commercial General Liability (CGL) insurance. This policy provides financial protection against common risks, such as lawsuits, accidents, and property damage claims. But what exactly does it cover—and what doesn’t it cover? Let’s break it down.
What Does Commercial General Liability Insurance Cover?
CGL insurance helps protect your business in case of:
- Third-Party Bodily Injury: Covers medical expenses and other damages if someone is injured on your business premises or due to your operations.
- Third-Party Property Damage: Pays for damages if your business activities cause harm to someone else’s property.
- Personal and Advertising Injury: Protects against claims related to libel, slander, copyright infringement, or false advertising.
- Medical Payments: Covers immediate medical expenses if someone is injured on your premises, regardless of fault.
What is NOT Covered Under CGL?
While CGL insurance provides critical protection, it does not cover everything. Business owners should be aware that CGL insurance typically excludes:
- Damage to Your Own Property: Coverage is needed under a separate property insurance policy.
- Damage to a Customer’s Property in Your Care, Custody, or Control: Consider Bailee’s coverage or similar policies for protection.
- Professional Services: If your business provides specialized advice or services, you may need professional liability insurance (also called errors & omissions insurance).
- Workers’ Compensation or Employee Injuries: Workers’ compensation insurance is required to cover workplace injuries.
- Damage to Your Work: If a project you complete is found to be defective, it is not covered under CGL.
- Auto Liability: Commercial auto insurance is needed for business vehicles.
- Intentional or Expected Damage: CGL does not cover damages that are intentional or expected.
Why General Liability Insurance is Essential
Without CGL insurance, you may have to pay out-of-pocket for property damage, accidents, or legal claims. Additionally, many clients require proof of insurance before hiring your business or allowing you to bid on projects. Some states and local governments also mandate coverage based on your industry.
How Much Does General Liability Insurance Cost?
There is no one-size-fits-all for insurance because every business is unique. Here are several factors that can affect the cost of your CGL policy:
- Type of work your business performs
- Level of risk exposure in your industry
- Number of employees on your payroll
- Business location
- Years of experience
- Annual revenue
How to Manage Your Insurance Costs
If you are a business owner worried about the cost of insurance, here are four proactive steps to take control of your insurance expenses:
- Conduct Regular Risk Assessments: Identify potential hazards and implement changes to reduce liability risks. Learn more here about a risk review.
- Implement Safety Programs: Reduce claims by training employees and establishing workplace safety measures.
- Compare Quotes from Multiple Insurers: Not all policies are priced the same. Shopping around can help you find the best deal with the best coverage that fits your actual needs.
- Consider Higher Deductibles: Choosing a higher deductible can lower your premiums.
Get Expert Guidance from RMC Group
Navigating commercial insurance can be complex. But you don’t have to do it alone. RMC Group can help you evaluate your coverage needs, find cost-effective solutions, and ensure you have the right protection for your business.
If you want to learn more about how to manage your business risks effectively, contact us today for a risk review to get started at 239-298-8210 or email us at rmc@rmcgp.com.