Commercial Liability insurance, also known as Commercial General Liability (CGL), is the main form of insurance coverage that protects the assets of a business when it is sued for something it did, allegedly did or failed to do that causes bodily injury, property damage, personal and advertising injury. The core coverage components of a CGL policy are: Bodily Injury, Property Damage, Product Liability, Completed Operations, Medical Payments, Personal Injury (damage from slander, false arrest, invasion of privacy and wrongful eviction), and Advertising Injury (damage from libel or false advertising). It’s important to note that not all CGL policies provide coverage for personal and advertising injury.
According to Bizstats.com, over 78% of all U.S. businesses are structured as a partnership or sole proprietorship. For the majority of small business owners, this form of ownership puts both your business and personal assets at risk. Owning the right CGL insurance policy helps protect both your business and personal life from financial ruin.
A common misconception of a limited liability company (LLC) or an incorporated company is the business is protected from liability and CGL insurance is unnecessary. This is not true. Business owners cannot escape liability simply by structuring the business under these legal entity types. Moreover, business owners can be held personally liable; thus subjecting their personal assets to suit, if they fail to operate the business as a separate entity – known as piercing the corporate veil. An example is a business owner purchases a personal item for his wife through the business instead of purchasing the item himself, as an individual.
In today's litigious society, even small mishaps can result in large lawsuits. That's why general liability insurance, along with property, worker's compensation, commercial automobile and commercial umbrella insurance is essential for most companies.
To learn more about our Commercial General Liability insurance products, speak with one of our experienced professionals today.