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Why do you need Comprehensive General Liability Insurance?

Posted on 29 August, 2022

Comprehensive General Liability Insurance is another term for the popularly known General Liability Insurance (GLI) or the Commercial General Liability Insurance (CGL), which is an essential part of an insurance plan for business owners. This policy protects business in case of property damage or bodily injury due to negligence. It covers expenses for compensations and legal defenses that a company needs to pay. Liability issues such as loss of tangible property due to your service and any damage caused to a person or property on your premises are covered under this policy to assist you in a smooth work operation.

Business owners can choose the Comprehensive General Liability Insurance as a standalone policy or club it with other policies, such as the Professional Liability Insurance or Cyber Liability Insurance, for the various kinds of coverages they might need.

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However, unlike what the term suggests, Comprehensive General Liability Insurance does not cover all general liability claims.

The Need for Comprehensive General Liability Insurance

Liability claims are common for business owners and can be expensive even more if a claim steers toward a lawsuit. The need for a Comprehensive General Liability Insurance can arise in the following scenarios if you are a business owner:

  • You or your employees are in face-to-face interaction with a client

  • You or your company represent the client or their company

  • Your company has access to a client’s assets

  • Your company uses any third-party sites

What Does A Comprehensive General Liability Insurance Cover?

The Comprehensive General Liability Insurance can protect business owners against the following claims:

1. Bodily Injury

Any incident on your property that resulted in the bodily injury of a third person. For instance, a customer can sue your company if they get injured because of a malfunctioning switch.

2. Property Damage

Any damage caused on someone else’s property by you or any employee from your company. For instance, your company can get sued for damaging something on someone else’s property

3. Advertising Injury

Damage caused to another company or individual through advertisement or copyright infringement. For instance, any photograph used without the owner’s permission or potential damage to someone’s reputation through your advertisements.

4. Reputational Damage

The Comprehensive General Liability Insurance can compensate for the legal costs if someone sues your company for any reputational damage caused by you or your employee.

What Can Comprehensive General Liability Insurance not Cover?

It is also essential to note the claims that the Comprehensive General Liability Insurance does not cover.

  • The CGL insurance cannot cover any legal expenses if your company gets sued for unsatisfactory professional services. A Professional Liability Insurance can cover such claims.

  • Expenses incurred because of cyber security threats that cause harm to your company and customer data, which is what a Cyber Liability Insurance can help with.

  • Any form of damage to your company vehicles by you or any employee. Commercial Auto Insurance covers such costs.

  • Compensation to company employees for any illness or injury related to work. A Workers’ Compensation Insurance can cover such costs as treatment expenses or benefits./p>

Cost Of A Comprehensive General Liability Insurance

Every business is different, and so are the factors determining the cost of a Comprehensive General Liability insurance policy. A few crucial factors are:

1. Industry Risk

Factors that influence an industry and impact a company’s future in that sector.

2. Company size

The size of your company is an essential factor in assessing the value of claims.

3. Location

The location of your company is a crucial factor. A risky location of your business can make it more difficult for the insurance company to protect your assets. For instance, a business in a flood-prone area can be considered a risky location.

4. Claims History

A record of your claims history is another important factor in determining the cost of a Comprehensive General Liability insurance.

5. Coverage Limit

The cost of your General Liability Insurance will also depend on the coverage limit, which is the highest amount you will be paid for a claim.

Conclusion

Even with all the necessary measurements, there are chances of property damage, bodily injury, or reputational damage due to negligence. Regardless of the company’s size, you can benefit primarily from the Comprehensive General Liability Insurance that covers all the related claims to operate your business smoothly with zero concerns.

Secure your business with the Comprehensive General Liability Insurance from ICICI Lombard, with an improved understanding of risk management, financial strength, and dedicated risk engineers to help you in every step. A Comprehensive General Liability Insurance provides coverage for all such damages,

protects your business, and relieves you of the financial burden. ICICI Lombard understands your business and offers a one-stop solution for all your insurance-related concerns and requirements through a hassle-free process.

  • Liability Insurance
  • Product Code: 4066
  • Product UIN: IRDAN115CP0001V01202021

Help us know you better!

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Workman Compensation, 4010 , IRDAN115P0010V01200607)