As a business owner, you take responsibility for the environment of the operation, and the conduct within. You want a nice, safe, honest and secure business, to put it lightly. But, how can you respond if a dissatisfied customer has a bone to pick? The answer might be to turn to your commercial general liability insurance, also called your CGL or GL policy. Here’s how it works.
Your CGL insurance includes a lot of benefits that might be able to help you out when you make mistakes that harm others. However, policies do include limitations, so it’s important to know when you might need to expand your policy.
CGL Policies As Part of a BOP
Many small business owners get their general liability insurance through a type of insurance product called a business owners policy, or a BOP. BOPs are packages of insurance that contain many of the most-essential types of insurance that a business needs. Since general liability policies are among these, then they are likely included in your BOP.
What does a CGL Policy Cover?
All BOPs that offer general liability insurance include a few basic types of protection. Though policies differ, the most well-known coverages include:
1. Property damage coverage: If you accidentally cause harm to someone else’s belongings, this coverage can help you pay for the cost of those losses.
2. Bodily injury coverage: Should someone get hurt in your property, then your coverage can compensate them for their recovery costs. This is sometimes called slip-and-fall coverage, because it protects you if someone falls in your business and hurts themselves.
3. Legal assistance coverage: If you harm someone, and they sue you, this coverage can help cover the costs of a lawyer and related legal fees.
4. Products/completed-operations coverage: If you sell products or provide services, this coverage pays after you sell an item, which then causes harm to others.
5. Medical payments assistance: Someone might get hurt in your business, but it might not be your fault. Regardless, this coverage can help you compensate the injured party. It might even help you avoid a lawsuit.
6. Personal injury coverage: Someone else might accuse you of committing libel, slander, advertising injury, copyright infringement or other similar misconduct. This coverage can help you respond to the event.
Keep in mind, in many cases, you will have to buy more coverage that your BOP’s CGL policy won’t directly cover. The job of your business insurance agent is to help you get this coverage. So, don’t hesitate to call us to build up your liability insurance portfolio.