Commercial General Liability Insurance Policy (CGL) protects your business against any liability arising from third-party for bodily injury or property damage and personal injury caused to them. It means, if your company, product, your work, or anything associated with your business causes injury to someone like your client or their property, you could be legally held responsible for it and may also require paying compensation. It is during this time; CGL comes to the rescue.
Acting as the foundation for most of the companies’ liability programs, CGL covers a wide range of liability losses that a company is exposed to during the daily course of business.
The general liability has the following coverages:
- Bodily injury: It includes mental anguish, humiliation, shock, mental or physical injury.
- Personal injury: It includes discrimination, segregation, and harassment, not related to employment.
- Advertising injury: It includes infringement of trademark and copyright.
- Lawsuits, investigations, and settlements: If filed damages against you, or sued you, the insurance policy covers the investigation and attorney expenses, medical expenses in case of injury
- Financial loss coverage: A commercial general liability insurance policy ensures that you can move forward without incurring unnecessary monetary losses. The policy not only protects you against unexpected losses but also ensures a safe future for your business
The policy is a combination of various products and gives additional extensions also which makes this one of the most preferred policies.
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Case for Commercial General Liability insurance policy
Established in 2010, M.R. Textile Ltd. is one of the leading textile companies in Gujarat. They have their business clients spread throughout the world. Last year, they signed a big business deal with a foreign company. As per the deal, they had to export Rs. 50 crore worth of textile products and garments. The foreign company insisted on checking the quality of the stock and therefore, sent one of its senior employees, Mr. Johnson to the company’s manufacturing unit in Gujarat. However, while inspecting the consignment, Mr. Johnson tripped over an extension cord and severely hurt his back.
It was the duty of M.R. Textile to ensure the safety of the work area and therefore, the foreign company filed a lawsuit against the company. Luckily, M.R. Textile had purchased the commercial general liability insurance which covered the compensation and other legal costs.
The policy paid the compensation amount to Mr. Johnson and saved M.R. Textile from a huge monetary loss. Since the case was solved out of the court, the deal remained intact and the business could continue as usual.