Do I Need General Liability Insurance?
The only way to effectively protect the assets of your business is to carry adequate Commercial General Liability (CGL) Insurance coverage. CGL protects your business from damages caused by bodily injury or property damage for which your business is found to be legally liable.
What Is Covered Under A General Liability Insurance Policy?
A typical CGL policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations, and can be offered as a package policy with other coverages such as Property, Crime, Automobile, etc.
As a safeguard against liability, CGL enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. CGL policies also provide coverage for the cost to defend and settle claims. Here is more detail about what a typical CGL policy may cover:
Automatic Additional Insured
Coverage is provided for written contracts, agreements and permits.
Personal and Advertising Injury
Protects against offences made by you or your staff during the course of business, such as libel, slander, or copyright infringement in advertisements.
Provides coverage for legal expenses for liability claims brought against your business, regardless of who is at fault.
Provides coverage for medical expenses if someone is injured on your premises or by your products.
Occupiers and Operations Liability
Provides coverage for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
Provides coverage for bodily injury and property damage sustained by others as a result of your products.
How Much General Liability Insurance Do I Need For My Business?
The amount of coverage that your business needs depends on three factors: perceived risk, where you operate your business and the type of products you manufacture.
Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more coverage than another organization that manufactures stuffed animals.
Premises and Operations Liability
If you operate in a province or area that has a reputation for rewarding high damages, then you may wish to purchase higher limits of liability.
Type of Product Manufactured
If you manufacture a dangerous product, you may want to carry higher limits of liability.
Choosing A General Liability Policy
Remember, you can purchase an Umbrella Liability policy to help achieve the desired limit of liability. Other ways to protect your business in addition to CGL include the following:
- Establish a high standard for product quality control at your organization.
- Keep all company records up to date and accurate.
- Train your employees thoroughly and properly.
- Ask Mumby Insurance Brokers, Inc. for safety and compliance information.