Commercial General Liability Insurance (2024)

FAQs

What are the 3 forms of commercial general liability? ›

CGL coverage is categorized into bodily injury and property damage, advertising and personal injury, and medical payments, each addressing specific aspects of potential liabilities.

On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.

General liability insurance helps protect you from claims that your business caused bodily injury or property damage. It can also protect you if someone sues you for advertising injury. Commercial property insurance covers your business' physical location and equipment, whether you own or lease it.

Only general liability insurance can spare your business from lawsuits over a visitor slipping and falling on your commercial property. And only professional liability insurance can shield you from the high cost of alleged professional mistakes that cause a third party financial losses.

CGL policies do not provide coverage for property that you own. A separate property insurance policy is needed to insure buildings, equipment, vehicles, and other assets your business owns. CGL insurance only covers liability for third-party property damage, not damage to property you own or control.

The CGL policy lists on the declarations six different limits. While the limits are separately listed, it is important to recognize that the limits are all interrelated. That is, payment of damages on one limit will also affect another limit.

Here are some typical premiums for different amounts of coverage: $250,000 per occurrence/$250,000 aggregate range from $500 to $1,000 on average. $1 million per occurrence $2 million aggregate range from $1,000 to $3,000.

On average, Insureon customers pay $42 per month, or about $500 annually, for a $1 million general liability insurance policy. Additionally, 29% pay less than $30 per month, and 40% pay between $30 and $60 per month. Customers who need more coverage will likely pay a higher premium.

So, the estimated annual premium cost for a policy with a $5 Million coverage limit would be approximately $1125.

You can protect your business from a variety of risks, including the risk of a lawsuit arising from everyday business activities, with the purchase of a commercial general liability policy. CGL policies cover property damage, bodily injury, and other types of claims.

Why is commercial insurance so expensive? ›

Why are insurance prices out of control? It's a combination of bad luck and bad policy. California's vulnerability to natural disasters like wildfires exacerbates the issue. But rising retail theft is also driving up costs, leaving businesses in a lurch.

You can think of it this way: General liability insurance only covers certain liability losses. BOP covers those same liability and some losses to property that your business owns.

Commercial General Liability (CGL) insurance protects business owners against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising).

Comprehensive general liability insurance is an outdated term for general liability insurance. Another common name for general liability coverage is commercial general liability (CGL) insurance. It helps protect your business from claims that it caused: Bodily injuries.

Also known as business liability insurance, general liability insurance protects you and your business from “general” claims involving bodily injuries and property damage. Almost every business has a need for general liability insurance.

Liabilities can be classified into three categories: current, non-current and contingent.

Commercial General Liability (CGL) is the standard commercial liability policy used to insure businesses. There are three primary coverage sections that make up a CGL policy: premises liability, products liability and completed operations.

Liabilities often have three characteristics: They happen as a result of a previous transaction or occurrence. It establishes a present liability for future cash or service payments. Liabilities are an unavoidable burden.

Types of Liability

The liability of licensees and their employees falls into three areas of law: criminal, administrative, and civil. One situation that could potentially result in all three types of liability is the sale of alcohol to a minor.