General Liability provides protection for bodily injury or property damage should you, the insured, be negligent.
All businesses share common liability exposures that are addressed by a Commercial General Liability [CGL] policy. No matter what line of business, manufacturer, contractor, or professional services, all share common risk denominators that require CGL. As the name lends itself, it is general but doesn’t cover the more specialized liability risks, like Professional, Directors & Officers, or Environmental Impairment Liabilities. These liability risks require customized coverage to work alongside the CGL.
The CGL primary coverage is a duty to defend the policyholder for Third Party allegations of Bodily Injury or Property Damage. This duty to defend is a significant grant of coverage because claims can be valid, groundless, frivolous or fraudulent. A duty to defend means the insurer will appoint legal counsel and pay legal costs in defence of the claim. Its second obligation is to indemnify the third party and pay damages to which in law the policyholder has been found liable.
Every business will have any element of premises & operational exposures, off site work or products which create potential liabilities. The CGL is a fundamental cornerstone in any liability portfolio.
*These coverage descriptions are for illustration purposes only. For full particulars, recourse must be made the actual policy wordings.
*Subject to policy wordings and exclusions