Commercial General Liability for Small Businesses (CGL)

Commercial General Liability (CGL) insurance policy provides comprehensive coverage to small business owners against personal bodily injury and property damagecaused to third party arising from the company's operations, goods or accidents on its insured property./span>

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Liability from Product or Service
Property damage or Bodily Injury
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Identifying Potential Liabilities in Day-to-day Operations

Small businesses may face potential financial and operational liabilities in day-to-day operations due to several factors. They can be held liable for any injury to the customer on the business premises or as a result of the business activities.

Small businesses that manufacture, distribute, or sell products may face liability claims if their products are defective or cause harm to consumers. They may be responsible for damage to third-party property caused by their operations or products.

Assessing the Impact on Business Finances

Accidents can take place anywhere and anytime, even if the best precautionary practices are in place. Small businesses can face liability-related issues such as compensating the injured party and apart from this, there are add-ons that provide coverage for defence costs if the affected third party decides to sue the insured party.

Exploring the Protective Features of CGL Insurance

Consider a small business owner busy in daily business operations and one of the customers during the visit gets injured in the business premises. The customer got injured, and since the customer got injured on the business premises, he asked the owner of the premises to compensate him for the medical expenses. The business owner had commercial general liability insurance and compensated the customer for the medical expenses.

Apart from this, there are several add-ons available for the policy buyer, such as defence costs, personal and advertising injury, etc., that can be purchased by paying an extra amount. Relating to the above-mentioned scenario and talking about these two add-ons, if the business owner had not provided compensation for the medical expenses and the customer filed a lawsuit against the insured business owner, then during the court procedure, he will get coverage for the lawyer's fee and court-related costs.

Choosing the appropriate coverage for small business needs

Here are two hypothetical examples to explain the role of CGL for small businesses:

  1. Egg on the Face: Local Bakery Faces Lawsuit over Damaged Cake

    Janice Ray owns a small artisanal bakery ‘Blissful Bites' which specialises in handmade pastries and cakes. She has invested her savings into the business and has built a loyal customer base in the local community. Shrija, a customer, placed a birthday cake order from Blissful Bites. Janice promised delivery, and on the delivery date, she handed the cake to one of her executives to deliver it to Shrija's address.

    While on the way, the executive met with a minute accident, and the birthday cake was damaged. Enraged, Shrija refused a full refund and filed a legal claim on Janice's business.

    The commercial general liability insurance policy with the defence cost add-on was active when this incident took place and Janice Ray got coverage for the lawyer's fee and other specified court related costs during the trial.

  2. Timely Insurance Wiring Saves the Day

    Avinash's shop deals in electrical supplies and devices. One day, Shom, a customer visiting the shop accidentally got electrocuted because of faulty earthing. Though the accident did not turn out to be life-threatening, Shom was enraged. Avinash and his workforce profusely pleaded and sought forgiveness for the incident.

    After this, the insured party that is Avinash raised a claim and provided financial compensation for the injury caused due to electrocution caused in his shop's premises.

Conclusion

When running a small business, unforeseen and unplanned issues can derail all the efforts that have gone into building the business. Understanding that your public liability insurance policy offers coverage against unexpected problems fills you with hope and confidence against all odds. CGL enables you to concentrate on your business expansion plans without fretting about repercussions stemming from legal actions. We, at Policybazaar for Business, list a host of customised commercial general liability insurance from the top insurance providers to help you decide according to your requirements.

Written By: PolicyBazaar - Updated: 22 February 2024
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Policybazaar for Business - Comprehensive Liability Insurance - Customer Reviews
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4/5
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4.3 April 09, 2023
Shubh
Competitive Premiums
The premiums offered by PolicyBazaar for the Comprehensive General Liability Insurance are competitive, considering the extensive coverage and top-notch customer service they provide.Truly recomend it.
Ludhiana
4.3 March 28, 2023
Prakhar
Worth Buying
PolicyBazaar worked closely with me to tailor the coverage to meet the specific needs of my business.Worth buying.
Dehradun
3.8 March 16, 2023
Veer
Wide Coverage
One of the most significant aspects of this insurance is its coverage. It provides extensive protection against a wide range of liabilities, including bodily injury, property damage, etc. Thanks for the policy PB
Lucknow
3.8 March 04, 2023
Akash
Peace Of Mind
I have been a satisfied customer of PolicyBazaar for several years now. It offers a comprehensive and reliable safety that has given me peace of mind and allowed me to focus on growing my business without constant worry about unforeseen events.Thankyou PB.
Bareilly
3.8 February 20, 2023
Ram
Claim Process Is Hassle Free
PolicyBazaar's claims process is efficient and hassle-free. In the unfortunate event of a claim, they handled everything swiftly and professionally, ensuring a smooth resolution without unnecessary delays. This reliability and promptness have further strengthened my trust in their services.Thankyou.
Delhi
4 February 20, 2023
Rohan
Great Customer Support
PolicyBazaar can help you get your Insurance as I am in the construction Industry and needed some guidance on risk concerns. I contacted PolicyBazaar Team, whO explaned to me the process to get the Insurance. Thank you PolicyBazaar.
Jamshedpur
3.8 February 16, 2023
Aditi
Damages Covered
I recently purchased CGL insurnace from PolicyBazaar. They helped me to cover my damages. Thankyou.
Jamshedpur
4 February 12, 2023
Neha
Helpful Team
We were looking to buy Comprehensive General Liability Insurance Plan that protects Third party property from any accidental damage at my workplace. So we landed on the PolicyBazaar website. It was well managed and described all the benfits in detaill... We contacted their Customer support and dcided to buy from them. Thanks, PolicyBazaar Team
Coimbatore
3.8 February 08, 2023
Veer
All In One Platform
It is an All in one platform which provided me unique perks, Low premium prices and a fast claim settlement process. Thankyou PB. Excellent platform.
Vadodara
4.3 February 04, 2023
Amar
Good Package
Got a really good coverage. Thanks, PolicyBazaar
Lucknow