Every small business owner should have an insurance cover for his/her business. The correct policy will protect the business from closure due to an event that could cause catastrophic loss. A policy also protects the cash-flow if an unexpected accident supervenes. A commercial general liability (CGL) insurance policy is a key part of a small business insurance. It plays a critical part when an incident causes a small business to be sued.
Description of CGL
It is a cover that protects the business if sued by an individual or an entity. A suit could be as a result of property damage caused by an employee. It could also be a claim for injury to a third party or to an employee. The cover also intervenes if a business is sued for slander or liberal or any harm the business causes to a rented property. CGL offers protection by availing the legal fees needed to defend the business against the suit. The funds also cover any settlement needed or a court award. CGL policies protect a small business against three types of claims.
Property Damage and Bodily Injury Liability
The cover responds when a staff causes damage to a third party’s property. For instance, when an electrician causes a minor fire at a client’s home. It also responds when a client is injured by the small business or by one of its employees. For instance, CGL can respond when a client slips and falls on the floor of the premises.
Personal Injury Liability
Its focuses on damage perpetrated using words. The cover responds when a business owner, an employee or the business is sued for slander or libel. A suit can be filed alleging that either of the three entities damaged a third party’s position, character or reputation. This is through slanderous or libellous defamatory statements.
Tenant’s Legal Liability
The insurance policy responds when the business is sued for damaging a premises that it has rented. If a business owner or an employee caused a fire in a rented building, the cover could respond to offer restitution to the landlord.
Acquiring a Cheap Liability Insurance
There are numerous insurance brokers that offer cheap professional liability insurance. City Insurance Group work with a panel of leading insurers to ensure you get the best policy for your business needs at the best premium. Please speak to us to discuss the best liability insurance cover to acquire for your particular business situation and we’ll be happy to advise.