General Liability Insurance

General Liability Insurance

You work hard to build up your business, don’t let one mishap cost you the years of effort you have put in. With the proper liability coverage in place, rest assured that your business is protected in the event of a third-party claim resulting from your product, operations, or premises. We can help you find a personalized liability policy so you can focus on growing your business.

For many, owning and establishing a successful business requires a lifetime’s worth of work. One lawsuit can wipe away those countless years of effort. However, securing your business with a commercial general liability policy can protect you against such unforeseen circumstances. Here are just a few examples where a commercial general liability (CGL) policy can step in to take care of onerous expenses resulting from potential lawsuits and/or medical expenses:

• You are a contractor working on a client’s property. While reversing your vehicle, you hit and damage the client’s front porch
• You own a restaurant, a customer slips and falls within your premises or in washroom
• You own a health and wellness business. A customer launches a lawsuit against you for misleading advertising

Accidents can happen, but protecting yourself against such occurrences is an active step you can take. A commercial general liability policy can be customized to your business needs, speak with a broker to discuss your situation and diagnose your requirements.

What does a CGL policy cover?

In broad terms, a commercial general liability policy covers you against claims arising from bodily injury, advertising liability, and damage to someone’s property from business operations or your business’ products. In the event of a claim and if you are held liable, your policy would cover you against legal expenses and the indemnity costs to third parties. Here is a deeper look into some of the standard coverages and wordings offered by a commercial liability policy:

Bodily Injury and Property Damage Liability: The infamous “slip and fall” incident is a classic example of a situation that could give rise to bodily injury claims. This portion of the policy will cover expenses (medical and legal) if any visitor (eg. customer, vendor, maintenance personnel) is injured while on your premises, or through your operations.

It is important to remember that you can still face lawsuits even if you took the due diligence to mitigate against mishaps. That is why a commercial liability policy can help protect you against such kinds of unforeseen legal and medical costs.

Personal and Advertising Injury: This portion of the policy would cover you against expenses arising from situations where there has been an infringement of someone’s personal rights or intellectual rights. For example:

• Wrongfully evicting someone (eg. a tenant) from a leased premise falls under personal injury and could lead to a potential lawsuit.
• Wrongfully evicting someone (eg. a tenant) from a leased premise falls under personal injury and could lead to a potential lawsuit.
• If a customer finds that your product packaging falsely makes a claim, you could be held responsible under advertising injury.

 
These are just a few of the many ways that personal advertising and injury liability claims could arise. A standard commercial liability policy is designed to cover such occurrences giving entrepreneurs the peace of mind to focus on their business growth.

Medical Payments: This coverage kicks in to cover medical payments for injuries sustained by non-employees while the person is on the business premises or exposed to the operations. This coverage will cover the reasonable ambulance, medical, professional nursing and funeral expenses related to the injured individual, however, there is no legal expense coverage since medical payments coverage only applies in no-fault situations. In such a condition, no litigation is pursued.

Additional Coverages to Consider

The section above provides information on the key components of a standard commercial liability policy;however, many carriers offer additional endorsements to reflect the unique risks of every business. Here are some of the additional coverages to consider:

• Liquor liability: for many restaurants, selling or serving alcohol may be a key part of operations. However, such a service comes with its risks. An intoxicated patron could pose a risk to themself or others, therefore putting your business at risk as well. Fortunately, many insurance carriers offer liquor liability to cater towards such a risk.
• Non-owned automobile: Do you have employees that operate their personal vehicle for your company/business use? Did you know that your business could be held responsible for your employees’ actions while they are driving their personal vehicles for your business use? This is where the non-owned automobile endorsement offers coverage if your business is held legally liable.
• Privacy breach coverage: data plays a key role in most businesses. This coverage offers protection for expenses and interruptions that could occur if your business’ confidential data is compromised or stolen.

What affects the premium?

A commercial liability policy requires thorough assessment of your business operations and their resultant exposures. Some factors considered are:

• The type of business: an insurance company may look at the industry your business operates in, the number of employees, the type of product and where it is sourced from/produced, the financial projections of your business, among various other aspects.
• Area you are operating in: just like personal insurance, the neighborhood you are operating in and its relevant claims history, exposure to natural hazards, adjacent exposures, can play a role in the premium.
• Your claims history: this is a significant factor that would affect your premium calculations. An insurance company may look at the frequency of claims, type of claim, amount of claim to gauge eligibility and the subsequent impact on premium

What affects the premium?

A commercial liability policy can be a complex decision, so going through a broker can alleviate some of the confusion and anxiety that may arise. At Insurepedia, our team of experts has experience working with businesses of varying sizes and industries. Whether you are a home-based business, or an established enterprise with multiple employees; whether you are in the restaurant industry or a residential contractor, our team has cross-industry experience and works with leading carriers that continuously adapt their product offerings to the ever-changing marketplace. Don’t hesitate, reach out to us today!