Comprehensive general liability insurance refers to a business insurance policy that provides coverage for customer injuries, customer property damage, and lawsuits related to both.
Comprehensive general liability insurance, comprehensive public liability insurance and CGLI insurance are essentially synonyms for what is most commonly referred to as commercial general liability insurance.
A commercial general liability policy is typically the first kind of insurance coverage a new business purchases. General liability insurance covers some of the most common risks faced by small businesses.
Insurance companies typically no longer use the term “comprehensive” when referring to general liability insurance coverage because the phrase can be a source of confusion.
While "comprehensive general liability insurance" may still be used by some insurance professionals, it is generally considered an outdated term referring to the standard commercial general liability insurance policy.
Commercial general liability insurance covers third-party liability claims such as customer injuries, damage to a customer’s property, product liability, and claims of defamation or copyright infringement.
In addition, most general liability policies include contractual liability insurance, which protects your business against the financial risks that you assume when you sign a contract.
General liability insurance costs an average of $42 per month. Your cost is based on a few factors, including:
A general liability policy is a great fit for many companies, but not all small businesses will benefit from carrying this policy.
In general, you should only invest in a general liability policy if you deal directly with the general public, have a customer-facing storefront, or work in an industry susceptible to copyright infringement or advertising injury lawsuits.
Since general liability covers injury to customers or damage to their property, businesses that don't interact with clients may not reap all of the policy's benefits.
Additionally, you may want to consider a general liability policy if you are concerned about advertising injuries, such as libel, slander, or copyright infringement.
If you're worried about your business's reputation or operate in an industry that is particularly vulnerable to potential reputation-damaging lawsuits, a general liability policy may be a good option. This is especially true because lawsuits over slander, libel, and copyright can get expensive and take a significant amount of time to resolve.
General liability insurance covers a lot, but not everything. Here are a few things not covered by a general liability policy.
If your company provides professional advice, you could be held liable for errors and mistakes. These errors won't be covered by a general liability policy, potentially leaving your business vulnerable to lawsuits.
Professional liability coverage protects your business in the event of these types of errors. Such policies are often used by law firms, financial advisors, and consultants.
General liability won't protect your business property in the event of a fire, break-in, vandalism, or other incidents. You'll need commercial property insurance to cover the business property itself.
This policy is often combined with a commercial general liability policy to receive a discount on premiums through a business owner's policy.
Workers' compensation insurance is required in most states if you have employees. This policy protects your business in the event that an employee is injured while at work.
A general liability policy will not cover employee injuries or accidents. Even if your state does not require workers' comp, you may want to consider it to protect you, your business, and your employees.
Your business vehicles would not be covered by a general liability policy in the event of a car accident or lawsuit resulting from a vehicle collision. For this, you'd need a commercial auto policy.
Commercial auto insurance covers your business in the event of an accident or collision with company-owned vehicles. Most states require a commercial auto policy if your business has company vehicles. Certain industries, such as trucking and delivery services require additional coverage.
Complete Insureon’s easy online application today to compare general liability insurance quotes from top-rated U.S. companies. Once you find the right policy for your small business, you can begin coverage in less than 24 hours.
For more information about saving money, read more on cheap general liability insurance.