If you own a business and operate multiple locations, you’re probably aware that running your company comes with risks. That’s why it can be so important to have adequate coverage for your business. CGL insurance provides financial protection against lawsuits or claims from third parties who have been harmed by your company’s activities. Fortunately, CGL insurance is an affordable way to protect yourself from catastrophic losses. Here are some benefits of purchasing commercial general liability insurance as well as questions you should ask before purchasing this type of coverage.
What is CGL Insurance?
CGL insurance protects your business from paying claims filed against it in connection with its operations. This type of coverage protects your company from claims ranging from negligence to intentional acts such as fraud or bodily injury. In other words, if a customer suffers an injury or illness in connection with your business, or if someone files a lawsuit against your business that was caused by an act of negligence, this coverage will help cover the costs of the lawsuit.
When Should You Buy CGL Insurance?
Since each company’s needs are different, it’s important to assess your company’s needs with regard to commercial general liability insurance before purchasing a policy. Generally speaking, you may want to consider purchasing CGL insurance if:
- You own a business where someone could be harmed by the company’s operations – For example, if your business uses chemicals that are potentially harmful, or if your business sells food and beverages that could cause illness.
- You operate multiple locations – This is because it may be more likely that you or one of your employees will be involved in an incident that results in a claim being filed.
- You’re concerned about big lawsuits against your business – While most claims are small, it’s important to have coverage in case a lawsuit against your business is filed by a customer who was harmed or by a client who was defrauded.
What Are the Benefits of Having this Coverage?
CGL insurance provides financial protection against lawsuits or claims from third parties who have been harmed by your company’s activities. In other words, this insurance covers the costs of any legal settlements or judgments against your business arising from its activities. There are a number of benefits to having CGL insurance, including:
- Protection from large claims – This is because most claims are under $100,000, and some are as small as $1,000. So, it’s important to purchase coverage that protects against potentially large claims.
- Easy to get – CGL insurance is an insurance policy that both you and your agent can easily explain and understand.
- Affordable – CGL insurance is an affordable way to protect yourself from catastrophic losses.
As you can see, CGL insurance provides a lot of protection for your business. Ideally, you’ll want to purchase coverage that protects you against claims from third parties who have been harmed by your company’s activities. However, it’s important to note that most claims are small, so it’s best to purchase coverage that protects against potentially large claims. If you decide to purchase CGL insurance, make sure you ask yourself these questions before you sign a contract.