Purchase a CGL Policy Through a Commercial Insurance Agency
No matter how careful a business owner may be they still need an insurance policy that provides financial protection from the many risks that they might incur. Commercial General Liability (CGL) insurance protects all types of small-business owners from claims of injury, property damage, and negligence related to their activities during the course of their business day. The indemnity provided by this policy can help cover the costs associated with the need to mount a legal defense.
It’s also important to note that your clients may require you to have a CGL policy before they’ll sign a contract, so having the right coverage in place can make a significant difference in your ability to bring on new clients and increase revenues.
A CGL policy covers many court-related costs
Available through any commercial insurance agency, a CGL policy protects your business by providing the financial resources necessary to keep it operational when unfortunate mishaps occur. A typical policy covers the following expenses:
- Costs related to defending or investigating a suit or claim against you, including court costs, witness fees, and attorney’s fees
- Reasonable expenses incurred when assisting in your own defense, such as income lost while spending time in court
- Judgments resulting from covered suits, including interest required on the judgment
- Settlements, including the injured party’s medical expenses, if your defense is unsuccessful, and
- The premium on a court-mandated bond connected with a liability suit
Who is protected by a CGL insurance policy?
A general liability policy insurance policy covers many of those other people involved in your business, as well as the owner. For example, if you have a joint venture or partnership, all of your partners, members, and their spouses are protected if they’re sued for acts they engage in, in any official capacity related to your business. As a corporation, your policy will also cover all of your business’s executive officers, directors and stockholders while they’re acting in their official capacities.
If you have subsidiaries, the liability coverage on your policy extends to any subsidiary where you own at least 50 percent of the stock, and your policy also protects your employees from claims that result from actions they take in their capacity as employees. Contact a commercial insurance agency for questions about coverage and to learn about other instances where this policy provides protection to the entity with regards to liability claims.