Business owners policies (BOPs) provide several types of commercial insurance in one package. One of these is liability insurance. A commercial general liability (CGL) policy covers several liability risks within your business. However, there might be times when you need expanded coverage. Here's more about how this coverage works.
Understanding General Liability Coverage
When your BOP offers general liability insurance, it means that it offers you protection in the event you accidentally cause harm to someone else. Your coverage might help you cover legal fees and settlement costs in the event a dissatisfied customer (or similar party) sues you because they slipped and fell in your store. Coverage provides a legal mechanism to help you address this person's complaints.
Most CGL policies cover the accidents most likely to occur within any business. These often include:
- Bodily Injuries: If someone gets hurt and blames your business, then this coverage can apply.
- Property Damage: Should you damage someone's belongings, then this coverage pays.
- Personal Injuries: Someone might accuse the business of such acts as libel, slander or malicious prosecution. CGL policies might address lawsuits from these accidents.
- Advertising Injuries: If a competitor claims that your business' advertising unfairly targeted them, then they might sue. You can respond using this coverage.
- Medical Payments: When someone gets hurt in your business, they might file under this coverage. It can help them pay for their medical costs. However, it does not require a lawsuit. It also doesn't matter if the accident was your fault. By giving someone the option to file for medical payments, you might even avoid lawsuits.
Additional Coverage For Your Business
The liabilities covered by a CGL policy are not all of those that might exist in your business. At times, you will need to buy additional liability coverage, such as:
- Errors & Omissions Coverage: This pays for professional mistakes made by the business. This coverage applies to instances of malpractice.
- Products Liability Coverage: Harm caused by one of your products will receive coverage.
- Completed Operations Coverage: If you complete a project, and that project later malfunctions and harms others, then completed operations coverage can still protect you.
- Cyber Liability Coverage: Data stored on computer networks might get stolen or hacked. This coverage can help you control the damage and protect clients impacted by the event.
There are other liability policies out there. And depending on your products, structure and services, you might need to buy it.
Sometimes, you can add some extended coverage into your BOP itself. There are various policy endorsements that might help you do so. However, you might have to buy separate policies to achieve adequate protection. Talk to your Rising Star Insurance Group agent about the best course of action.
Get A Quote