A commercial general liability (CGL) policy is standard coverage that protects your business from property damage claims, bodily injury claims, and/or personal and advertising claims that could put your business’s assets at risk. However, a common misconception about general liability is that it also covers your business for damages caused by you or your employees.
In fact, the opposite is true. A CGL policy only provides coverage to third parties. But, what does this mean? Let’s take a look a couple scenarios.
General liability will protect your business in the event that a customer is injured on your property, resulting in costly medical bills. However, what if you or another employee is injured while on the business premise? Will a CGL policy protect you then? The answer is no.
General liability will also protect your business in the event that an employee accidentally damages customer property, resulting in costly repairs. However, what if, in addition to damage to customer property, there is also damage to business property? Will a CGL policy cover that damage? Once again, the answer is no.
A CGL policy only provides coverage when a customer is injured or customer property is damaged. This is why it’s important for your business to have additional coverage to protect against any first party claims. You should consider the following coverages:
- Directors & Officers (D&O) Liability: to protect your business against financial injury from actual or alleged wrongdoings by the company.
- Employment Practices Liability: to protect your business from claims of employment-related discrimination, harassment or retaliation.
- Fiduciary Liability: to protect your business from breach of fiduciary duty imposed by ERISA for employee benefits.
- Errors & Omissions (E&O) Liability: to protect your business against financial injury that may be insured by professional liability or product or service.
- Cyber Security Liability: to protect your business from first party and third party costs associated with a security breach or cyber attack.
For more information on general liability, contact McGrath Insurance Group at 508-347-6850 or firstname.lastname@example.org.
*This article is written for informational purposes only and should not be construed as providing legal advice.