A Commercial General Liability (CGL) policy is an important part of keeping your company protected in a variety of situations you’ll encounter over the course of doing business. But it’s also important to understand what this policy might not cover so that you can properly mitigate your risk.
CGL insurance is designed to protect you from financial loss if you are found liable for bodily injury or damage to property, as well as injury from advertising claims or use. However, the coverage period and time at which the incidence occurred will contribute significantly in the determination of what the policy will cover, and there are some standard exceptions to these policies as well that you need to be aware of.
OCCURRENCES OUTSIDE OF THE POLICY PERIOD
Your CGL policy will only cover accidents that occur during the policy period. So even if the work involved in the accident is completed during the policy period, the accident must also fall within that time frame to be covered.
PROPERTY BEING WORKED ON
Damage to the property being worked on directly is not covered under a CGL policy. That means that, if you’re building a porch, and part of it collapses, repairs will not be paid for under your policy. However, if a separate piece of property was damaged in the collapse, the cost of those repairs would be covered.
THE WORK ITSELF
If your company is charged with installing new carpet, and you do a poor job of it, the cost to redo the work will not be covered. This is considered a professional mistake, as opposed to a non-professional mistake, which is what a CGL is designed to cover.
If one of your vehicles is involved in a traffic accident that causes damage to someone’s property, your CGL will not pay for that. You need to have separate Commercial Auto Insurance to protect yourself from liability in that type of situation.
INJURY TO AN EMPLOYEE
While a CGL does protect against bodily injury, it won’t cover an injury to one of your employees who is hurt on the job. The bodily injury provision only applies to uninvolved parties who are injured because of a mistake you or your workers make, but only Worker’s Compensation Insurance will cover the employee themselves.
There can be no doubt that a Commercial General Liability insurance policy is essential when you’re looking to protect your business from financial ruin. It’s not the only type of protection you need, however, and our professionals can help you determine exactly which combinations of policies will give you the type of comprehensive coverage you need. Call or email us today to learn more about what we can do to help you keep your business safe.