Commercial General Liability Insurance
Total commercial protection
General liability insurance is a contract between the business owner and an insurance company, with the purpose of providing protection against a variety of financial risks, such as claims for bodily injury and property damage caused to third parties during commercial operations of any business or enterprise. It is essential to protect the business owner from legal costs and compensation that may arise from such claims.
The main coverages include:
Civil responsibility - Liability
- Covers legal costs and compensation if a person is injured on the company's facilities or due to its operations. Additionally, it covers against claims of material damage to the property of others caused by business operations. The law requires this coverage for most businesses.
Legal defense and court costs
- Covers attorney’s fees and other legal expenses related to defending against lawsuits.
Medical payments
- Covers reasonable medical expenses incurred by third parties due to bodily injuries caused by accidents on company premises.
Advertising and personal injury
- Covers claims of defamation, slander, or copyright infringement in the company's advertising activities; nonphysical damage caused to a person.
Completed operations
- Covers claims for damages resulting from products sold or services completed by the company, even after they have been delivered or completed.
Damage to rented property
- Covers against damage to the rented property caused accidentally.
Professional liability, errors and omissions - E&O
- Protects professionals, such as doctors, lawyers and architects, against claims related to negligence, errors or omissions in the provision of professional services.
Contingent liability
- Covers when the company is responsible for the actions of subcontractors or suppliers. Protects against liability claims arising from the actions of third parties with whom the company has a business relationship.
Cyber liability
- Covers mitigation of costs and damages related to cyber incidents. The most common incidents include security and privacy breaches, system failures, and cybercrimes (such as ransomware attacks).
Additional considerations:
Customization
- Companies can select additional coverages based on their specific needs and particular risks. For example, a professional services firm might need additional errors and omissions (E&O) coverage, while a construction company might need extended coverage for completed operations.
Comprehensive protection - Extensive protection
- By adding additional coverages, businesses can ensure they are protected against a variety of potential risks that could arise in the course of their daily business operations.
Contract compliance
- Some commercial contracts may require specific coverages that go beyond standard liability. Maintaining these coverages can help businesses comply with contractual requirements and avoid potential legal disputes.
*It is important to keep in mind that the terms and conditions of the insurance companies may vary for each coverage. Therefore, it is essential to review carefully to fully understand the extension and any exclusions that may apply.
