1. The Scope of Commercial General Liability
Commercial General Liability (CGL) protects a business against claims alleging that operations, products, or employees caused bodily injury or property damage to an outside third party (clients, vendors, visitors).
2. Coverage A, B, and C Explained
Coverage A covers Bodily Injury and Property Damage. Coverage B covers Personal and Advertising Injury (such as copyright infringement in advertising, slander, or false arrest). Coverage C provides no-fault Medical Payments for minor on-premises injuries without requiring litigation.
3. The Critical Duty to Defend
In addition to paying settlements or judgments up to the policy limit, CGL policies include the insurer's legal obligation to furnish defense counsel at the insurer's expense. Legal defense costs do not erode the policy limit in standard ISO CGL contracts.
Commercial General Liability (CGL) protects businesses against claims of bodily injury, property damage, and advertising injury. Determine your industry risk tier and evaluate essential endorsements with our Business Insurance Needs Checklist.
For small business owners, combining general liability with commercial property coverage in a package policy is often cost-effective—read our complete guide on BOP: Business Owner's Policy Explained. Check your business exposure for uncovered gaps using our Coverage Gap Checker.
Ensure your commercial leases and client contracts properly define additional insured status as detailed in Named Insured vs. Additional Insured and review deductible trade-offs in Deductible vs. Premium.
Assess total asset vulnerability against liability limits to determine whether an umbrella policy is warranted.
