06 May Commercial General Liability–Third Party Bodily Injury

Commercial General Liability (CGL) insurance is a type of policy designed to protect your business from financial loss due to lawsuits and other claims arising from your operations. Here’s a closer look at its coverage and how it relates to third-party bodily injury:

1. Coverage Overview: A CGL policy typically covers claims involving bodily injury, property damage, and personal and advertising injury that occur as a result of your business operations or products. It can also cover the costs of your legal defense.
2. Third-Party Bodily Injury: This aspect of CGL insurance is crucial. It protects your business if someone (not an employee) is injured either on your property or as a result of your business activities. For example, if a customer slips and falls in a store or if a product you sell causes an injury, this insurance would help cover medical expenses and potentially legal fees if you are sued.
3. Claims-Made vs. Occurrence Policies: CGL policies can be structured as either “claims-made” or “occurrence” policies. An “occurrence” policy covers injuries that happen during the policy period, regardless of when the claim is filed. A “claims-made” policy covers injuries only if the claim is filed during the policy period or within a specified time frame after the policy ends.
4. Exclusions and Limits: It’s important to understand what is not covered under a CGL policy. There are often exclusions for intentional acts, contractual liabilities, and injuries to employees (which are typically covered under workers’ compensation instead).
5. Importance of Adequate Coverage: Ensuring that you have adequate coverage limits is crucial. This means not only having a sufficient per-occurrence limit but also an appropriate aggregate limit, which caps the total payouts during the policy period.

If you’re considering a CGL policy or looking to understand more about your current coverage, it might be useful to consult with an insurance broker or legal advisor to ensure your business is adequately protected against potential liabilities, especially those involving third-party bodily injuries.  Contact Barrow Group today for a free consultation.