CGL protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.
What Does CGL Cover?
A typical CGL policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises, or operations, and can be offered as a package policy with other coverages such as, Property, Crime, Automobile, etc.
As a safeguard against liability, CGL enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost to defend and settle claims.
How Much Coverage Does Your Business Need?
The amount of coverage that your business needs depends on three factors:
- Perceived risk – consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more coverage as compared to another organization that manufactures stuffed animals.
- Where you operate your business – if you operate in a state that has a reputation for rewarding high damages, then you may wish to purchase higher limits of liability.
- The type of products you manufacture – if you manufacture a dangerous product, you may want to carry higher limits of liability.