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Comprehensive general liability insurance
Comprehensive general liability insurance refers to a business insurance policy that provides coverage for customer injuries, customer property damage, and lawsuits related to both.
What is comprehensive general liability insurance?
Comprehensive general liability insurance, comprehensive public liability insurance and CGLI insurance are essentially synonyms for what is most commonly referred to as commercial general liability insurance.
A commercial general liability policy is typically the first kind of insurance coverage a new business purchases. General liability insurance covers some of the most common risks faced by small businesses.
Insurance companies typically no longer use the term “comprehensive” when referring to general liability insurance coverage because the phrase can be a source of confusion.
While "comprehensive general liability insurance" may still be used by some insurance professionals, it is generally considered an outdated term referring to the standard commercial general liability insurance policy.
What does comprehensive general liability insurance cover?
Commercial general liability insurance covers third-party liability claims such as customer injuries, damage to a customer’s property, product liability, and claims of defamation or copyright infringement.
In addition, most general liability policies include contractual liability insurance, which protects your business against the financial risks that you assume when you sign a contract.
You can add additional people to your commercial general liability policy, such as subcontractors, with an additional insured endorsement.
How much does general liability insurance cost?
General liability insurance costs an average of $42 per month. Your cost is based on a few factors, including:
- Amount of coverage
- Industry and risk factors
- Location
- Number of employees
- Claims history
When does your business need general liability insurance?
A general liability policy is a great fit for many companies, but not all small businesses will benefit from carrying this policy.
In general, you should only invest in a general liability policy if you deal directly with the general public, have a customer-facing storefront, or work in an industry susceptible to copyright infringement or advertising injury lawsuits.
Since general liability covers injury to customers or damage to their property, businesses that don't interact with clients may not reap all of the policy's benefits.
Additionally, you may want to consider a general liability policy if you are concerned about advertising injuries, such as libel, slander, or copyright infringement.
If you're worried about your business's reputation or operate in an industry that is particularly vulnerable to potential reputation-damaging lawsuits, a general liability policy may be a good option. This is especially true because lawsuits over slander, libel, and copyright can get expensive and take a significant amount of time to resolve.
What is not covered by comprehensive general liability insurance?
General liability insurance covers a lot, but not everything. Here are a few things not covered by a general liability policy.
Professional mistakes, errors, and breaches of contract
If your company provides professional advice, you could be held liable for errors and mistakes. These errors won't be covered by a general liability policy, potentially leaving your business vulnerable to lawsuits.
Professional liability coverage protects your business in the event of these types of errors. Such policies are often used by law firms, financial advisors, and consultants.
Business property theft, damage, or destruction
General liability won't protect your business property in the event of a fire, break-in, vandalism, or other incidents. You'll need commercial property insurance to cover the business property itself.
This policy is often combined with a commercial general liability policy to receive a discount on premiums through a business owner's policy.
Employee injuries
Workers' compensation insurance is required in most states if you have employees. This policy protects your business in the event that an employee is injured while at work.
A general liability policy will not cover employee injuries or accidents. Even if your state does not require workers' comp, you may want to consider it to protect you, your business, and your employees.
Company-owned vehicle accidents
Your business vehicles would not be covered by a general liability policy in the event of a car accident or lawsuit resulting from a vehicle collision. For this, you'd need a commercial auto policy.
Commercial auto insurance covers your business in the event of an accident or collision with company-owned vehicles. Most states require a commercial auto policy if your business has company vehicles. Certain industries, such as trucking and delivery services require additional coverage.
Cyber insurance
Cyber liability insurance, also called cybersecurity insurance, protects small businesses from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.
Product liability insurance
Product liability insurance can help cover your legal expenses if someone claims that a product you sold, made, or distributed caused an injury or property damage.
Hired and non-owned auto insurance
This policy provides liability coverage for accidents involving personal, leased, or rental vehicles used by your business.
Liquor liability insurance
Liquor liability insurance provides coverage for legal fees, settlements, and medical costs if alcohol is sold to an intoxicated person who then harms others or damages property.
Commercial umbrella insurance
Once a policy’s limit is reached, commercial umbrella insurance provides additional coverage for liability claims made on general liability, commercial auto, or employer’s liability insurance.
How do I get a general liability insurance policy?
Complete Insureon’s easy online application today to compare general liability insurance quotes from top-rated U.S. companies. Once you find the right policy for your small business, you can begin coverage in less than 24 hours.
For more information about saving money, read more on cheap general liability insurance.
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Updated: July 23, 2024
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