Insurance is an important part of any business’s overall strategy. When a catastrophic loss occurs, insurance may be able to rescue your company and protect your cash flow. When a disaster strikes unexpectedly, insurance may save your business and safeguard your cash flow. Commercial general liability (CGL) insurance is an important part of your business’s overall insurance plan since it serves as a safety net in the event that your company is sued as a consequence of an incident.
What Is CGL, Exactly?
Simply put, when your company is sued by a third party, CGL responds on your behalf. A lawsuit against your business may arise from property damage caused by one of your employees, as well as a claim for bodily injury to an employee or third party. CGL can assist you and your company if you or your company is sued for libel or slander or if your company damages a rental property. CGL provides coverage for the expenses of defending your company in a lawsuit, as well as any settlements or court judgments that may follow. The vast majority of business general liability policies cover four different types of claims.
Personal Injury and Property Damage Liability
Bodily injury and property damage liability are the cornerstones of business general liability insurance. This coverage would cover an employee who destroys a third party’s property, such as a plumber who accidentally causes water damage to a customer’s home. It also intervenes when a third party is injured as a consequence of your company’s or its employees’ conduct. Customers who slip and fall on a store’s floor and get injuries, or construction workers who drop a tool on a pedestrian, are both instances of common bodily injury claims.
Personal Injuries Liability
Personal injury liability is distinct from physical injury liability, which includes the actual hurting of a person. The usage of words is a factor in personal injury liability. Your personal injury coverage kicks in if you, your employees, or your company is sued for libel or slander. Defamation cases are often filed against your company on the grounds that your firm made libellous (written) or slanderous (spoken) statements about another person’s or company’s character, reputation, or position in the community. You must have known the statements were untrue at the time they were made for your liability insurance to respond.
Medical Insurance Payments
Taking preemptive steps to prevent being sued in the event of an accident may be the most effective defence against liability. Medical payments coverage will gladly pay for someone’s medical expenses if they are injured on your property or as a consequence of an employee’s conduct, without their having to file a lawsuit against you or your business. In many cases, rising to the occasion and offering to pay an injured person’s expenses eliminates the need for a lawsuit and helps the company maintain its good reputation.
Legal Responsibilities of the Tenant
If you are judged legally liable for causing damage to the rental property, whether you rent your office, retail outlet, warehouse, or shop from a third party, tenant’s legal duty applies. Assume you or your employees create a fire that causes substantial property damage. As a tenant, your legal liability coverage would kick in to pay your landlord for the damages. Similarly, if a pipe breaks, causing water damage, your CGL insurance will kick in to help.