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Commercial General Liability

Commercial General Liability insurance, commonly known as CGL, is a type of insurance policy that provides coverage for businesses against financial liabilities arising from third-party claims of bodily injury, property damage, and advertising injury. This insurance protects businesses if they are sued for accidents that occur on their premises or as a result of their operations.

Example #1

For instance, if a customer slips and falls in a retail store, CGL insurance would cover the medical expenses if the customer decides to sue the business for the injury.

Example #2

Another example is if a business's advertising inadvertently infringes on a competitor's copyright, CGL insurance can assist with legal defense costs.

Misuse

Misuse of Commercial General Liability insurance could occur if a business fails to disclose relevant information about its operations or does not report claims promptly. For example, if a business intentionally conceals previous lawsuits related to premises liability to secure lower premiums, this could lead to a denial of coverage when a new claim arises. It's essential to be transparent and truthful when dealing with insurance to maintain the protection it offers.

Benefits

The primary benefit of Commercial General Liability insurance is the financial protection it provides against costly legal expenses and potential settlements. For example, if a customer files a lawsuit against a business for injuries sustained on the premises, the CGL policy would cover legal fees, medical expenses, and any settlement costs, reducing the financial burden on the business.

Conclusion