Agency Blog

Commercial General Liability Insurance is Your First Line of Defense, But You Still Might Have Coverage Gaps!

Commercial general liability (CGL) insurance is one of the most important components of a comprehensive business insurance portfolio. It protects your company’s assets from liability claims stemming from injuries or property damage that occur on your business premises or that are caused by you or an employee during the course of business operations. CGL insurance also provides coverage for attorney fees as well as any judgments or settlements that you are required to pay. What’s more, CGL policies provide coverage for libel, slander, copyright infringement, and false or misleading advertising claims.

That’s a lot of coverage! But CGL insurance still does not cover every type of liability exposure that you might have. Let’s just say that it covers the basics, but since every business is unique, you may need deeper liability protection depending upon the type of business you do and the risks you face. You may need additional commercial liability policies, or you may need to add endorsements to other insurance contracts in order to cover all the bases.

If you purchase your commercial general liability insurance on its own or as part of a business owners policy (BOP), you might need additional liability endorsements to ensure you have complete coverage. Some examples of these endorsements include:

  • Employment practices liability endorsement, to provide coverage for your business in the event of any violations of federal and local antidiscrimination regulations. This endorsement will protect you if a current or former employee sues your business for discrimination.
  • Liquor liability endorsement, to provide coverage for bodily injury and property damage that you can be held responsible for if you furnish alcohol to customers on your business premises.
  • Employee benefits liability endorsement, which provides protection from lawsuits related to charges of negligence in relation to the administration or management of your employee benefits plan.

In addition to adding endorsements to your BOP or CGL policy to cover certain liability exposures, you might need additional stand-alone liability policies that provide more extensive coverage for certain types of liability exposures. These include:

  • Commercial umbrella/excess liability insurance, which provides liability protection above and beyond the liability coverage included in your CGL policy, commercial auto policy, or BOP. A commercial umbrella policy pays for damages when your other liability coverage has been exhausted.
  • Professional liability/errors and omissions insurance, which offers coverage for lawsuits that arise from rendering negligent professional services or failing to perform professional duties.
  • Directors and officers (D&O) liability insurance, which provides protection for directors and officers of large companies against legal judgments and costs arising from unlawful acts, erroneous investment decisions, failure to maintain property, releasing confidential information, hiring and firing decisions, conflicts of interest, and many other types of errors.

Your business is incredibly vulnerable without adequate liability protection. Without CGL insurance you could face complete financial devastation and the inability to continue to operate if you are sued. Most business owners must purchase commercial general liability insurance or a business owners policy, as well as additional liability policies or endorsements, to ensure that their business is fully protected should the worst happen.

We can help assess your business risks and your liability insurance needs. If you have any coverage gaps, we will uncover them and suggest solutions to ensure that you have the most comprehensive business insurance portfolio that fits your needs and budget. We work with a variety of carriers who specialize in business insurance for firms of all types and sizes. The right liability protection for you is out there. Call us today to learn more.

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