WHAT IS COMMERCIAL GENERAL LIABILITY INSURANCE?

 

Commercial General Liability (also known as CGL) was introduced in 1986, and remains the General Liability format used for all commercial insureds.

 

 

   CGL DIFFERENCES FROM PREVIOUS GENERAL LIABILITY FORMATS

 

▪    Provides broader coverage, previously available only by endorsement, including the addition of coverage sections B & C.

 

▪    Excludes certain newly emerging exposures for which coverage is considered appropriate only under specialized policies.

 

▪    Uses ‘simplified’ policy wording.

 

 

 

   CGL COVERAGE SECTIONS

 

▪    Coverage A - General Liability
Designated on the policy as “Bodily Injury and Property Damage”

 

▪    Coverage B - Personal And Advertising Injury Liability
Expands the scope of CGL coverage beyond bodily injury and property damage, strengthening its purpose in covering common liabilities.

 

▪    Coverage C - Medical Expense
Covers accidents arising from your premises or operations, regardless of your liability.  Allows you to promptly compensate for minor injuries, and has the advantage of discouraging lawsuits. The standard limit is $5,000 per person.

 

 

 

   CGL LIMITS OF LIABILITY

 

▪    General Aggregate Limit (Other than Products-Completed Operations) –
maximum amount payable during the policy term for all claims other than Products Liability and Completed Operations Liability

 

▪    Products Liability -Completed Operations Aggregate Limit  -  maximum amount payable for liability for products you manufacture or sell; or construction or repair work you’ve completed

 

▪    Personal and Advertising Injury Limit – maximum amount payable for Coverage B

 

▪    Each Occurrence Limit - maximum amount payable for any one claim

 

▪    Fire Damage Limit  - maximum amount payable for fire damage to the portion of your landlord’s building that you occupy

 

▪    Medical Expense Limit - maximum amount payable for Coverage C

 

All limits are in addition to defense costs.