Because mistakes happen, we need liability insurance. Essentially, commercial general liability insurance is there to clean up after company mistakes, providing coverage for claims related to negligent business activities or the failure to use reasonable care. Based on this information, how much commercial general liability coverage do you need? This can be very difficult to assess, because there is no one benchmark that works for everyone. While some commercial insurance brokers recommend that your coverage match that of the largest court award for a case relevant to your business, others base recommendations on company assets. Unlike property, which has a fixed value, liability claims do not have any limitations. In this lawsuit-crazed society, the sky could be the limit.

What is Commercial General Liability Insurance ?

Most companies obtain basic liability coverage through a Commercial General Liability (CGL) form which covers 4 types of injuries: bodily injury that results in actual physical damage or loss, property damage or loss, personal injury which would include slander, and advertising injury which covers the company from charges of negligence that result from the promotion of its own goods or services.

Supplemental Coverage :

Most companies will need to supplement their commercial general liability with at least two other types of coverage such as workers comp and automobile insurance. Companies requiring higher levels of coverage than provided with their commercial general liability often add an Umbrella Liability Insurance Policy. Umbrella insurance provides additional coverage for areas where you are not insured, coming into effect once your underlying policy has paid out up to its limits.