Unexpected risks can present a challenge for companies. General liability insurance protects the business owner from financial loss due to injury or property damage. “Commercial”, meaning that coverage is only for companies, and the “responsibility”, meaning incidents that either the owner or their employees can be held responsible for.
Commercial general insurance covers the business owner for any actions brought against them. There are many exclusions, but the CGL will generally cover injuries to customers, passers-by, or caused by negligence. Additional coverage may include damage to company property or employees. Limits to commercial general coverage policies have limitations. The policy limits have a limit per incident and a lifetime limit. The owner of the business can file a claim to damage the vehicle of a client if a worker copies the truck. That counts as an event and the policy would pay out the full amount. CGL policies do not usually cover damage to equipment, inventory, or construction. If the landlord doesn’t have sufficient workers’ compensation insurance, the policy will not cover medical expenses for employees who are injured on the job. The policy does not cover financial losses resulting from harassment or slander. The exclusions of policies can vary greatly from one insurer to another. Therefore, it is important for business owners to carefully compare them.
Cost of a commercial general insurance policy will depend on how much protection is required and how many employees have had it. A fee of only a few hundred dollar could be charged for a small company, but not for recent claims. For large construction companies, however, it could run into the thousands annually.
Business owners have the option to shop around for the best rates. Because general liability insurance does not cover all claims, it is necessary for business owners to buy additional insurance to insure your employees, vehicles, inventory, or business.
