A Commercial General Liability (CGL) policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees. It covers non-professional negligent acts. Understanding this coverage is an important first step in managing your risks. 

What it Covers

There are many instances in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages. A general liability policy will usually cover the costs of your legal defense and pay damages on your behalf if you are found liable. This coverage is extremely important, due to the negative impact that a lawsuit can have on a business and because such liability suits happen so frequently. General liability includes:

Bodily Injury and Property Damage Liability

Bodily injury and property damage coverage provides protection against losses from the legal liability of insureds for bodily injury or property damage to others arising out of non-professional negligent acts or for liability arising out of their premises or business operations. Mental injuries and emotional distress can also be considered bodily injuries. 

Personal and Advertising Injury

Personal and advertising injury liability protects an insured against liability arising out of certain offenses, including:

  • Libel
  • Slander
  • False arrest
  • Infringing on another’s copyright
  • Malicious prosecution
  • Use of another’s advertising idea
  • Wrongful eviction, entry or invasion of privacy

Medical Payments

Coverage for medical payments includes payments for injuries sustained by a non-employee caused by an accident that takes place on the insured’s premises or when exposed to the insured’s business operations. Medical payments coverage can be triggered without legal action. This creates a prompt settlement of smaller medical claims without litigation. It pays for all necessary and reasonable medical, surgical, ambulance, hospital, professional nursing and funeral expenses for a person injured or killed in an accident that occurred on the insured’s premises or arising from business operations.

What’s Not Covered 

Speak with your insurance professional, regarding the types of coverages that you may need, as general liability does not include:

Directors and Officers liability

Directors and officers liability insurance protects directors and officers of for-profit or nonprofit companies from damages resulting from alleged or actual wrongful acts they may have committed in their positions. 

Liquor liability

Liquor liability insurance protects businesses from loss or damage claims as a result of a patron of your business becoming intoxicated and injuring themselves or others. If your business manufactures, sells, serves or facilitates the use or purchase of alcohol, then your business will likely need this coverage. 

Pollution liability

This covers industrial, commercial and agricultural property owners, managers and developers with a broad range of pollution liability protection for gradual or sudden/accidental, first-party and third-party environmental liabilities. It also protects assets from unforeseen environmental exposures that could have a substantial impact on earnings and against unforeseen pollution hazards that may lead to bodily injury, property damage or pollution clean-up costs.

About Sine Insurance

At Sine Insurance Group, we are dedicated to providing you with custom-tailored insurance policies to protect your assets. Our comprehensive packages have been expertly crafted to serve St. Louis and the surrounding areas for the past 25 years. For more information about our products, contact us today at (636) 947-1177.