CGL stands for Commercial General Liability, and it refers to a type of insurance policy that safeguards businesses against liabilities arising from accidents, injuries, or property damage.
This insurance coverage is designed to protect businesses from legal claims and financial losses resulting from their day-to-day operations, including bodily injury or property damage caused to third parties. The policy typically covers a broad range of situations, such as slip and fall incidents on business premises, damage caused by products or services provided by the business, and libel or slander claims.
Under a CGL policy, the insurer provides coverage for legal defense costs, settlements, judgments, and medical expenses arising from covered incidents. It is a fundamental component of risk management for businesses, as it shields them from potentially substantial financial burdens resulting from unexpected accidents or injuries.
It is important to note that CGL insurance does not cover every type of risk that a business might face. It generally excludes liability arising from professional services, intentional acts, employee injuries, and certain types of property damage. To cover these specific risks, businesses often require additional insurance coverage in the form of professional liability insurance, workers' compensation insurance, or property insurance.
In summary, CGL is a comprehensive insurance policy that provides businesses with protection against legal claims and financial losses related to accidents, injuries, and property damage resulting from their daily operations.
