Commercial general liability: Commercial general liability is a type of liability policy that protects the interests of the businesses in case of bodily injury or property damage of third parties. Commercial general liability policy can be used to cover the businesses against injury and property damage to the third parties whilst present at the business’s place. For instance, if Mr. Ark is the owner of ABC limited and carries out operations in a shop. One day a customer visited his shop and due to the wet floor, the customer fell down and was admitted to a hospital. Now the customer could sue the ABC company for their negligence which resulted in the hospitalization of the customer. The ABC company would be liable to settle the loss or damage caused to the customer. The commercial general liability policy can help in these cases by paying the claim amount to the customer. The physical injury to your clients can be caused due to any of the factors such as your employees or your workplace which results in the claim being paid under the commercial general liability policy.
The other example can be when one of your employees visits a client’s place and causes damage to the property of the client, then you would be responsible to settle the loss or damage of the customer. The commercial general liability policy would be of great help in these kinds of situations. The claims would be settled by the insurance company under the commercial general liability policy.
What is covered?
Below are the things that are covered under the commercial general liability insurance policy:-
Coverage A – Bodily Injury and Property damage liability: This section covers the bodily injury or property damage to the clients arising out of non-professional negligent acts or for liability arising out of the premises or business of the insured. The other important thing to note here is that the mental injury and emotional distress caused to a person can also be considered as the bodily injury and treated accordingly. Punitive damages is the amount of money that you are ordered to pay in the form of punishment that would not be covered under the commercial general liability policy. Intentional injuries or damage, injuries or damage from the use of commercial automobiles, injuries to employees or damage to their property, damage to your own property would not be covered.
Coverage B – Personal and Advertising Injury: Personal and advertising injury protects the insured against Libel, Slander, False arrest, Infringing on copyright, malicious prosecution, wrongful eviction etc.
Coverage C – Medical Payments: There is a limited coverage for medical payments towards the injuries sustained by the customer caused by an accident at the workplace on the insured’s premises. The medical payments coverage can be triggered without a legal action and this enables to settle the small claims without any delay. The medical payments section also includes the expenses for emergency ambulance, reasonable medical and surgical charges etc.
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