Commercial General Liability Insurance
Commercial General Liability (CGL) is a coverage written to cover your exposure to damages by third parties for bodily injury or property damage claims or lawsuits. Most policies are very broad and cover some of the following exposures:
- Ownership, maintenance or use of the premises
- Operations conducted or performed on or off the premises
- Written contracts and agreements
- Products manufactured, sold or distributed
- Completed operations
- Personal injury
- Advertising injury
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Medical payments on the premises or at jobsites, without regard to fault
Limits
The limits available vary but standard limits available are $300,000, $500,000, and $1,000,000 per occurrence. Policies will also contain one or more "aggregates", Aggregates are the most a policy could pay in a year for the that type of coverage. The standard policy will have a "products and completed operations aggregate" and a "General Aggregate" for claims other than products or completed operations. If you wish to have a higher limit of insurance than 1 or 2 million you will have to purchase an Umbrella or Excess policy.
Premium Basis
The premium basis will vary on policies based on the type of business you own. Property type exposures tend to be rated on area while service and construction tend to be rated on Sales or Payroll. Each policy will have a page that lists your exposures and codes, the basis of premium, and the exposure they are using to determine your premium. You should review these to make sure they are accurate.
Endorsements
Endorsements are used to modify the standard policy. Some endorsements expand coverage while others limit coverage. These can be used to customize your insurance for your type of business. Some types of widely used endorsements are:
- Additional Insured
- Deductible
- Exclusion Endorsements
- Amendment of Limits
- State Amendatory
- Insurance Company Specific