Own a Business? Here’s What You Need to Know About Commercial Liability Coverage

As a business owner, you know that one small accident or incident can derail all of your success and efforts, and data says that about 40% of small businesses do not recover. Lawsuits can be time consuming and very expensive, and also threaten your relationships with your clients.

Your business could be exposed to a variety of liabilities. Depending on the type of business you operate, keeping track of what is a must have and what is a nice to have when choosing the right business insurance may be a challenge.

Today we will look at the Commercial General Liability (CGL) insurance – commercial liability coverage for damages that your business is found to be legally liable for as a result of bodily injury or property damage to third parties, including when you and your staff are conducting business off-site.


Per Investopedia: CGL is a type of insurance policy that provides coverage to a business for bodily injury (BI), personal injury (PI), and property damage (PD) caused by the business’ operations, products, or injury that occurs on the business’ premises.

It’s considered comprehensive business insurance, though it does not cover all risks that a business may face (as we have seen in the last two months’ blogs).

CGL policies have different areas of coverage:

  • Premises & Operations – which protects the business from claims that occur at the business’ physical location during regular business operations.
  • Product Liability & Completed Operations – protects against injuries which occur as the result of finished products, or completed work.
  • Personal & Advertising Injury – is intended to cover advertising and publishing activities that your company performs on its own behalf
  • Excess liability coverage – which can be purchased in order to cover claims that exceed the limit of the regular CGL policy.

When shopping for CGL, it’s important to distinguish between a claims-made policy and an occurrence policy.

A claims-made policy covers claims “filed” during a specific period of time, regardless of when the claim event occurred.  An occurrence policy provides coverage for claims when a claim event “occurs” during a specified time period; note the difference in what actually triggers coverage.

In addition to commercial liability coverage, businesses may want coverage for other business risks, such as employment practices liability coverage, to protect the business from claims of sexual harassment, wrongful termination, and discrimination.

You may also seek insurance to cover errors and omissions made in financial reporting statements, and coverage for damages caused by the actions of its directors and officers.

At Ross Insurance Agency, we work diligently to help protect your assets, efforts, and dreams.

Our insurance company’s Independent Agents are knowledgeable and committed to making sure you understand the exposures you face and have the coverage you are comfortable with. Our top priority is avoiding unpleasant surprises when it comes to protecting your business.

We invite you to contact us today to learn more about commercial liability coverage, and how we can tailor the exact business insurance and personal policy you need.