Commercial General Liability

Businesses always have associated risks with them. A business owner must need to manage risks that may cause harm to his business. There are various ways to manage risk such as applying risk controls, using technical measures, having physical control, etc. But one of the famous ways is to buy Commercial General Liability Insurance for your business.

Commercial General Liability or CGL is the easiest way to protect your business against claims and lawsuits. Operating businesses may accompany several risks. These may include bodily injury, property damage, and much more. A risk manager identifies them and applies appropriate controls to shift the risks outside the company.

But the problem is, we always need a professional to help us buy an insurance plan!

And the solution to this problem is SIMPLE!

Yes! You read the right words, and there is no need to worry about it anymore.

At MKZ Insurance, our Business Insurance Professionals help our clients to choose the right plan for their business. We have a wide variety of commercial insurance plans. You can choose the best fit for your business. 

To deal with risks associated with the operations of a business, you need to have a Commercial General Liability policy. Let us explore more about CGL:

What is Commercial General Liability?

It is a type of insurance that gives you coverage if you are liable to third parties. It covers damages caused by business operations or business products or services inside the business premises. These damages include both bodily injury and property damage even delivered offsite.

Commercial General Liability is an all-inclusive policy for a business. Still, we have some risks that are not covered under this policy.

CGL Insurance has various coverages. Like it covers risks associated with business operations that occur at the physical location of a company. But it also includes risks that are outside the boundaries of an organization. For instance, bodily injuries caused by deploying a business product or business service external to organizational boundaries.

Why do you need CGL?

This is a common question that often comes to the minds of small business owners. Small business owners think that they don’t need commercial policy insurance as they have small budgets. But the reality is any business, either its an SME or a Large Enterprise, is always at risk. This risk encompasses various forms of liabilities.

Smaller businesses have more risks as compared to larger businesses. The reason behind this fact is that liabilities have worse results if your business is small. So, you need to have at least a standard plan of Commercial General Liability for your business.

Here are some implications if you don’t have one:

  1. If you do not possess a proper plan of Commercial General Liability in New Jersey, your clients will not trust you. Same is the case if you don’t have it in New York. This severely damages your reputation in the commercial market.
  2. There are various events in which organizers ask for a liability certificate. Say you need to attend a tradeshow in New York. The organizing committee will require you to have an insurance policy plan for Commercial General Liability in New York.
  3. The main reason is that being liable to third parties for bodily injury or property damage costs too much. Because it involves all the costs associated with legal processes. On the other hand, if you have CGL, the Insurance company bears all these expenses for you.

Coverages under CGL

If you are liable to any third party, a Commercial General Liability covers all the expenses of lawsuits and pays on your behalf. But everything is done within your policy limits. 

The reason behind the popularity of Commercial General Liability in New Jersey is that these liabilities occur so frequently. Since the insurance company is bearing all the cost of legal defenses, so business owners are tension free.
However, there are three main converges by a standard CGL plan:

  • Coverage A:
    This coverage includes Bodily Injury and Property Damage to third parties. Bodily injuries may include mental and emotional stress. It means that a bodily injury is not necessarily physical harm. 

Legal liabilities for such harms are insured that have been arisen due to improper and negligent behaviors. This might have been done on-premises or off-premises of the business.

  • Coverage B:

Personal and Advertising Injury comes under this coverage. Under this coverage, things like defamation, character assassination, infringement of copyrights, invasion of privacy, and false arrest are dealt with.

  • Coverage C:

Coverage C is related to Medical Payments. It means that if a non-employee is injured by an insured product or service in an accident, the insurance company will bear the expenses. These payments are triggered without any legal proceedings. 

All the necessary payments for medical, nursing, surgical, and funeral expenses are clearly stated in the Commercial General Liability policy.

Conclusion

We have seen in detail the prospects of Commercial General Liability. No matter if you are running your business either from your home or from  any commercial trading center, having CGL Insurance is a must.

Choosing the best professional of Business Insurance has the same importance as that of choosing business insurance. MKZ Insurance has experienced professionals dealing with Commercial General Liability in New Jersey.