The Commercial General Liability (CGL) insurance policy is designed to protect businesses from liability claims, primarily those involving bodily injury or property damage caused by the business (you). This policy also provides coverage for advertising liability, personal injury liability and medical payments.

Commercial General Liability (CGL) Coverage A

Coverage A covers bodily injuries and property damage common in any business. It also spells out the insurance company’s obligation to provide a defense to for you. You are insured for an occurrence unless it’s excluded. The major exclusions fall into different categories, some of which include:

    • responsibilities to employees
    • damage to your work or product
    • aircraft, auto and watercraft

Other exclusions include liquor liability, pollution, intended injury and war.

Note. Most of these exclusions can be picked up with an additional CGL coverage form or separate insurance.

Fire damage to property you rent or occupy can be covered; however, a separate dollar limit applies. Liability for fire to another’s property in your care is excluded under basic CGL coverage. This is because liability policies don’t generally cover property in your care, custody, or control. Such property is considered to be a property risk rather than a liability risk.

Tip. Keep in mind CGL exclusions for liquor, aircraft and watercraft. If you’re not in the liquor business, there is coverage when providing drinks at a business or employee function. If you plan to use someone else’s watercraft or plane for a party, check your policy first. The CGL is not always an answer.

CGL Coverage B

Coverage B gives personal and advertising injury liability coverage. A broad range of offenses are covered which are not bodily injury or damage to physical property. Again, a specific dollar limit applies. This coverage is not for those firms in advertising, publishing, TV or Radio. These types of businesses need a specialized policy tailored to their specific needs.

Personal injury includes libel and slander. The liability covers advertising business goods, services, and products. Exclusions include:

    • intentional acts
    • wrong prices or quality
    • copyright, trademark, trade secret, or patent violation

Coverage B can be an important addition to the protection provided by Coverage A.

CGL Coverage C

This medical payments provision isn’t triggered by a charge of negligence. The insurer will pay up to the Declaration page dollar limits for medical services at the time of the accident. Later medical services, including ambulance and hospital are covered, too.

Of course, territory restrictions apply. Also, the injured must submit to a medical examination.

There are three advantages to purchasing Coverage C:

    • When you injure someone, but their medical bills are paid by you (your insurance company to be exact), it may give the injured person second thoughts about suing.
    • You’ll have peace of mind if someone was injured on your premises or in your operations. Their medical expenses will be paid.
    • The insurer gets a medical exam of the injured. This protects you if they decide to sue later.

Volunteers are the only workers that can receive medical payments. In Ohio, Workers Compensation generally covers employees.

Note. Athletic activities are not covered by Coverage C. Sponsorship of athletic activities, including auto racing, involves risks not anticipated by routine business insurance. Exclusions include intentional injuries.

If you’d like to learn more, contact one of our Licensed Advisors . We’re here to help.