Commercial General Liability (CGL) Insurance

Commercial General Liability coverage is an inclusive insurance policy for organizations and enterprises that provides insurance in opposition to certain market risks associated with their services and products. These consist of belongings damages, injuries, or losses that can arise throughout provider, by means of the employer's product, or on the enterprise premises.

Some nations have deemed CGL coverage obligatory for certain companies due to the associated dangers. Although this policy isn't always obligatory in India, it is nevertheless recommended to be at the safer facet by means of investing in CGL.

Most groups have at least one basic CGL coverage, which has benefits over different rules. CGL is large in its insurance and encompasses most dangers related to service or product companies. It is likewise referred to as General liability coverage.

Claims can price a fortune to an enterprise, resulting in loss or even shutdown of the employer in some cases. Therefore, making an investment in a company, long-term Commercial General Liability coverage may look like a needless rate within the brief term. Still, this policy has helped numerous organizations stay afloat amid hefty claims and allegations.

Commercial General Liability Insurance is basically third-party liability insurance. It contains features of Product and Public liability insurance.

Product liability involves all damages and losses caused to a third party by the company's product (or services), including damage to health by consumption, medical bills for injuries by use of the product, and any property damage related to the product.

Public liability insurance protects against public claims and cases against a company. It includes settlements in court and a compensation fee in most cases. Additionally, it also covers premises hazards and operation mismanagements.

It helps to understand the difference between claims-based and occurrence-based CGL policies. A claims-based policy works when the claim is made, regardless of when the incident happened. For instance, if you sell wafers, and a customer gets a severe disease due to regular consumption over the years, the date of filing the claim is considered, even if the product was bought and consumed years ago.

The occurrence-based policy works from the time when the event of the claim took place. If the policy was active at the time of the event, you get its benefits even if it has expired in the present.

Let's see a few examples where Commercial General Liability insurance may help a company:

• Suppose a customer comes into the business premises and hurts himself during his time there. He can call a claim on the company for negligence and improper maintenance of the place. Depending on the extent of the damage, the company may have to pay hefty compensation, even if the injury was caused due to the customer's negligence.
• You run a construction service agency. During the servicing, there are chances that the customer's property may face some damage. For example, if the maintenance of an electric switchboard causes a fire, this might cause heavy property and personal damage to a customer. The company may have to bear the medical and reconstruction costs and a negligence fine.
• Imagine you sell wafers. Due to some internal negligence, contamination occurs in the item. The customer who consumes the product will face medical issues. The company will be held responsible for the health damage if they file a suit. The company may cover the medical bills in such cases.

In all the above cases, companies face unexpected costs due to claims by users or customers. It is where a Commercial General Liability policy comes in and saves you a lot of headaches and capital.

Commercial General Liability insurance costs depend on the kind of insurer and policy you choose, your needs, your business revenue, etc. For an estimate, the most basic CGL usually costs from Rs 5,000 to Rs 20,000 annually for a small-sized business. However, businesses with more complex operations may have to pay higher premiums. Specific risky industries may get a higher quote due to high claim costs. Some companies even spend more than Rs. 100,000 on full-proof insurance policies.

This cost differs for each organisation and changes with additional policies, deductibles, and other customisation options. Obtain quotes from various companies to get a better idea for your business.

Almost all businesses operating in the market are prone to certain risks. Certain businesses, like food and beverage industries, pharmaceutics and beauty product companies, real estate, etc., face an increased risk of claims due to higher chances of accidental damages. Service-based companies, including construction, transportation, healthcare services, etc., are also risk-prone. Financial or legal advisory firms may face claims of false promises or dissatisfactory results. Even small-scale companies consider investing in a worthy policy due to unpredictable market shifts and conditions.

It is safe to say that every business needs a basic CGL policy to cover potential costs.

While coverage scope differs for each policy, here are some fundamental factors of Commercial General Liability insurance:

• Injury by a product - If the manufactured products lead to any direct or indirect body injury, the company is held responsible for the damage. CGL provides financial support in such cases.
• Property damage - - If the product or service leads to damage to third-party property, the Commercial Liability policy covers the related expenses and compensation.
• Advertising error - Incorrect or insufficient warnings, unclear usage guides, copyright issues, or miscommunication of any kind that results in the loss for a customer is covered by a Commercial Liability Insurance policy.
• Injury on premises - If a customer or a business partner gets injured on the company's premises, the company is liable for the related costs. CGL helps in such situations by providing legal and financial help.
• Completed operation - Some policies provide coverage even after the completion of the project. For example, if you complete the construction of a house and it later causes issues and damages, the policy will cover the costs involved.

These are the few limitations of a CGL policy:

• Employee injuries - Injuries or damage caused to the employees while working are not covered under Commercial Liability Insurance. Consider buying an Employee Protection policy for this subject.
• Intentional harm - - Any deliberate acts of cheating, lying, fraud, or injury is not covered by a CGL. Such liabilities fall on the company alone. The policy only covers unintentionally caused harm to consumers.
• Contractual liabilities - Liabilities assumed or agreed upon through a contract do not fall in the scope of Commercial Liability Insurance. For instance, signing a contract with a customer and taking responsibility for any damages will not be covered by your CGL policy. You can add on the contractual liability as an indemnity claims policy.
• Internal issues claim - Commercial Liability Insurance does not involve misunderstandings, discrimination, harassment, or unexplained termination claims within an organization.
• Environmental liabilities - CGL does not include any harm caused to the environment due to the company's unregulated practices and hazardous measures.

The following are the generally asked documents to purchase Commercial General Liability Insurance. Remember that some insurers may ask for additional documents as well.

• Application form - Insurance companies ask you to fill out a form with your company details. It serves as a quick information source for each client. The information is later verified through official documents.
• Business permits and entity documents - - Companies may ask you to show all business-related documents and ownership proofs. It includes licenses, approval forms, partnership agreements, history of transactions, etc.
• Financial statements - You may need to submit your balance sheets and profit and loss statements to the company for evaluation. It gives the insurer an idea of your business size and revenue capacity.
• Contracts or agreements - - If you have any ownership or liability-related contracts signed, you may have to submit a copy. It will help the company assess your liability and tendency for risks.
• History of claims - - Insurers ask for the history of claims that your company has faced in the past. It helps evaluate potential claims' extent and type.

You can directly approach insurance companies to enquire about the various CGL policies available. These companies provide all kinds of property, captive, and casualty insurance to businesses through their websites or offline offices. Talk to the advisors for consultation on the policies suitable for your needs.

You can also buy the policy through an insurance brokerage firm such as SecureNow. There are many benefits associated with purchases through a middleman. It can lead to cost savings and better options as insurance firms have access to the data of many insurance companies. You get expert advice and opinions on your policy. It is easier to get customised solutions for your needs. SecureNow provides complete support and assistance during and after the purchase of a policy.

These are the steps to follow to buy or renew Commercial General Liability insurance from the SecureNow website:

• Visit the SecureNow official website. Navigate to see which policies you prefer to buy/renew.
• You will see a button for obtaining a quote. Click on it. You will be asked to fill in your details in an application form. Mention all details clearly about the working and needs of your business.
• Read the terms and conditions associated with the policy carefully. You can consider seeking expert advice and suggestions over the terms.
• Submit the relevant documents. You can do this in both online and offline setups. Make sure you are ready with the documents and follow the guidelines properly. This will save time for any revisions or re-uploads.
• Once you are satisfied with your CGL policy, make the payment to purchase or renew it. SecureNow website provides numerous ways to make online transactions hassle-free.
• Save the generated policy documents on your computer. Consider keeping printed copies with you in case any need arises.

While there are any number of companies present in the market, these are the benefits SecureNow provides to its customers:

• SecureNow provides access to multiple insurance companies and their quotes to ensure you get the best policy for your business
• SecureNow has experts for support and guidance during the purchase of the policy.
• SecureNow understands that every business is unique. Our insurance solutions can be customised to your specific requirements according to your coverage, deductibles, and endorsement requirements to ensure that the CGL policy meets your business's risk profile.
• SecureNow has a user-friendly website to make the online application process more convenient for its users.
• SecureNow provides support during the claim settlement process. We make sure you receive the claim money you deserve.
• SecureNow provides the latest industry updates and policy renewal news to its long-term customers to ensure they receive the best advice possible.