Operating a business brings with it several risks. From slip-and-fall accidents on your premises to product malfunctions, any unexpected events could potentially lead to expensive lawsuits against you if they go wrong - at which point Commercial General Liability insurance comes in as a financial safety net for your organization. But, Who Is Insured Under A CGL Policy? Here we explain this crucial insurance product's coverage details as well as who might benefit.
Understanding Your CGL Policy: Who Is On Board?
Who Needs A commercial general liability insurance policy? - CGL policies act like shields for specific groups within your business, protecting those deemed most at-risk:
- Named Insureds: These typically include business owners and partners as primary policy beneficiaries - this assures coverage against liability exposure associated with you as the core of the operation.
- Additional Insureds: Your CGL policy can be expanded to protect other parties exposed to liability risks associated with your business activities, such as landlords, vendors, or even subcontractors. By adding them as additional insureds you're providing greater coverage.
Read more: What is Commercial General Liability Insurance?
Employees: Your Trusted Allies, Automatically Covered
Your employees are the foundation of your business and a CGL policy recognizes this fact. Most claims brought forth due to employee negligence while performing their duties are typically covered, including instances like customer injury caused by careless delivery persons or property damage caused by technicians making errors during service calls.
Note That: Who May Not Be Covered
Though CGL provides comprehensive coverage, there may still be exclusions; independent contractors typically wouldn't fall under your policy's scope, as well as issues regarding intentional wrongdoing by directors or officers that might arise during its operation.
CGL Insurance: Not Taking Risks
Commercial General Liability insurance should not be seen as a one-size-fits-all solution; however, certain businesses could greatly benefit from having coverage against third-party claims. Here is who should seriously consider purchasing CGL coverage:
- Businesses With Frequent Customer Interaction: Retail stores, restaurants, and service providers with frequent customer interaction should consider investing in CGL insurance as any slip-and-fall accident or product malfunction leading to customer injury could prove financially disastrous.
- Businesses With Increased Risk Factors: If your operations involve product sales, property maintenance, or construction work, liability claims increase substantially and CGL coverage becomes essential to such businesses.
Key Takeaways: Understanding Your Coverage Is Essential
Being informed on who is covered under your CGL policy allows for informed risk decisions. Furthermore, CGL policies offer peace of mind protection that safeguards financial well-being across many businesses and ensures that business operations run as smoothly as possible.
Ready To Discuss CGL Needs?
Summit Insurance Kelowna understands the challenges businesses in our community are up against, so our knowledgeable team is on hand to create a CGL insurance policy plan tailored specifically for you and your budget. Connect with us now for a complimentary quote and let's build a secure future together!
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