For any small-to-medium sized business to adequately protect its assets, commercial general liability insurance is often considered the minimum, and in many cases, the only real coverage the company requires. Large companies with multiple physical locations, considerably more employees and greater revenues, typically require supplemental insurance policies on specific assets but, for the majority of small enterprises, a standard CGL (commercial general liability policy) is an all-in-one bundle offering suitable levels of coverage at a reasonable price.
What Kinds Of Claims Are Insured By A CGL?
The typical CGL policy provides coverage against four primary kinds of claims, including: bodily injury, damage to property, advertising injury, and personal injury. These types of claims are the categories most-often faced by small business owners, and general liability insurance affords them an opportunity to purchase just one insurance plan against all four different types of exposure, rather than four separate policies.
Are The Coverage Levels Adequate?
There can be facets of certain small businesses which require additional coverage beyond that which is provided by a CGL, but the standard coverage provided against the aforementioned “big four” liabilities is usually more than sufficient for the majority of ventures. Although the exact amount covered by each policy can vary greatly, as a general rule of thumb, all commercial general liability insurance plans cover the fees connected with defending and settling against a covered claim. If the nuances of your business make you susceptible to the possibility of extremely large judgments against your business, you might want to consider supplementing your CGL with an umbrella policy.
About Umbrella Policies
The loosely-applied term “umbrella policy” refers to any type of supplemental coverage that can be purchased to cover the insured against monetary damages or fees which exceed his base policy’s limits. When utilized in addition to a CGL, the intention of the umbrella policy is to protect the business owner from highly unusual, unforeseen events thatlead to potentially-catastrophic judgments being levied against his personal and business assets.
Not every small business needs an umbrella policy, but given their relatively low cost and great potential value, these types of policies are usually worth having anyways. The amount of additional monetary coverage offered by umbrella insurance can be adjusted to suit your business’ unique profile in addition to your budget.
Summing Up The Benefits Of A CGL
Indisputably, the most significant benefit of a CGL is that it allows the customer to purchase the four essential forms of insurance for small businesses at a reasonable cost. Despite its cheaper price tag, the quantity of coverage provided against bodily injury, personal injury, advertising injury and property damage claims is also usually good enough for the majority of business owners.
If you’re a new business operator, or are simply interested in improving the quality of coverage on your existing venture, the commercial general liability insurance policy is the place to start. By shopping online for this kind of coverage, it is possible to find the perfect amount of protection at a price that easily fits into your budget.
For additional information on commercial general liability insurance, look for more upcoming articles from Darin Mendanor. In addition to the insight into CGL he has gained through 15 years in the public liability insurance industry, Darin is also a frequent guest author on subjects related to entrepreneurship.