Public Liability Companies

What Does A Commercial Business Liability Insurance Policy Include?

Companies that run businesses can face several types of liabilities. Settling these liabilities can involve a huge outlay of cash which they can ill afford. Commercial business liability insurance addresses exactly this issue and helps companies to find a way to protect themselves. Commercial business liability insurance pays a part of or all of the damages arising from the liabilities imposed on companies by law. It can even help pay for the defense costs when claims are made against the commercial general liability (CGL) insurance policies of companies. Without such policies, companies would have to fend off the damage claims and costs and also pay the trial defense expenses themselves. If all these costs are high, and they can be very high, companies can suffer severe financial loss or in extreme cases, bankruptcy. This article will describe some of the types of coverages businesses may choose to purchase.

A standard CGL insurance policy provides and includes commercial business liability insurance coverage to companies for insurance claims arising out of harm/injury to the public and employees. It also includes insurance coverage to companies towards property damage caused by an employee and injuries suffered by negligent employees.
Depending on the type of business and options chosen by a company, the CGL policy may include such protection as infringement on intellectual property, libel, slander, employment practices, and tenant liability.

The common inclusions of the commercial business liability insurance policy are described below. These may apply to a wide range of businesses from a real estate office or manufacturing plant to a shop or restaurant.

Bodily injury: This includes injury to a person, sickness, or an illness contracted by a person on the premises of a business. The CGL policy will ordinarily cover compensation to that person with the costs associated with the loss of services or medical care. It may even provide compensation for death that occurs from an injury or illness. Claims of the insured or employees are however covered under workmen's compensation insurance.

Property damage: Under a CGL policy, compensation to the owner of a property damaged by negligence of a business is provided by the insurance service provider.

Fire, explosion, or damage due to lightning: A CGL insurance policy service provider would compensate for the damage incurred to a business due to such eventualities.

Tenant's liability: The CGL insurance policy service provider would provide compensation for loss sustained to rented space used by a business. Only specified eventualities such as that due to a fire are included in the policy coverage.

Premises and operations liability, products-completed operations liability, contractual liability, and personal and advertising injury liability are some other common inclusions. Generally CGL policies work on an occurrence basis, rather than on a claims-made basis. Directors' and officers' liability and errors and omissions insurance are excluded from a CGL policy. Endorsements to the policy can be attached at an extra premium.

The extent of coverage depends on the premium and is stated in the policy document. Businesses can obtain quotes of premiums for a commercial business liability insurance policy from brokers and agents. Keep in mind that commercial business liability insurance policies can be completely custom-made for large or small businesses, joint ventures, partnerships, or corporations.

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