What is general liability insurance and what is covered? These are the basic coverages provided by the Commercial General Liability (CGL) insurance policy. As with any insurance policy there are limitations and exclusions you should be familiar with that are not addressed here.
Whenever you have a question about your policy you should contact your independent agent at EZ Center Insurance Services who will be able to answer these questions for you or possibly make amendments to your Commercial General Liability insurance policy to meet your specific needs.
The Commercial General Liability insurance policy provides an occurrence limit and an aggregate limit. An aggregate limit is the maximum limit the insurance company will pay in a policy term which is 12 months. The policy may or may not be subject to a deductible. The deductible can be applicable per claim or per occurrence.
The policy form can be an occurrence form or it can be a claims made form. Be sure you have a clear understanding of the difference between the two forms when you purchase Commercial General Liability insurance.
Premises Liability provides liability protection for you if a third party is injured while on your insured premises. It will also to extend to cover as an additional insured your landlord or manager of the premises you occupy if you are not the property owner. The Commercial General Liability insurance policy also provides coverage for third party property damage.
If you are the tenant of a rented building or space and unintentionally cause a fire or other damage the insurance policy will protect you.
Medical payments which has a per person limit which will be included in the General Liability insurance policy. Generally this limit is $5,000 but can be increased to $10,000 or higher with come insurance companies. The intent of this section of coverage is to provide coverage for minor injury that occurs accidentally and as it is paid without regard to liability of the insured it is also termed as a voluntary payment.
Personal injury liability applies to claims that are not a result of bodily injury. Some examples of claims paid under this portion of the Commercial General Liability would be false arrest, wrongful entry or wrongful eviction, libel or slander.
Advertising injury liability is included but only if this claim occurs as a result of advertising your services or products. This is not intended to provide Professional Liability you may need and would be better served through the purchase of a separate professional liability policy.
Products and Completed Operations liability insurance included in the Commercial General Liability insurance policy is intended to cover you for claims resulting from the manufacture, distribution or installation of your product. A completed operation is triggered when the product has been put to its intended use.
The policy will include supplemental payments such as defense costs, court costs, and your costs to assist in the investigation and settlement of your claim provided these actions are requested by your insurance company. As the policy holder you should document your expenses for proper reimbursement from your insurance company.
Hopefully you now understand a little more about how your General Liability insurance policy works and why you need to call EZ Center Insurance Services today to purchase this important coverage.