CGL is the Minimum Insurance for Your Business

September 30, 2011 | Author: | Posted in Insurance

Being the consummate all-in-one insurance policy for small and medium-sized businesses, commercial general liability insurance is oftentimes viewed as the one type of business insurance that a new firm needs. While large businesses that employ hundreds of people, generate comparatively-higher revenues and operate from several locations also require a more advanced strategy for insuring their assets, the basic CGL (commercial general liability) plan provides affordable coverage that is usually more than adequate for smaller businesses. Larger firms with several physical locations, more employees and higher revenues, generally require supplemental coverage on specific assets but, for the majority of smaller businesses, a standard CGL (commercial general liability policy) represents an all-in-one package offering suitable levels of coverage at a reasonable price.

What Does A Standard CGL Cover?

The average CGL policy provides coverage against four primary kinds of claims, including: bodily injury, property damage, advertising injury, and personal injury. These types of claims are the categories most-often faced by small business owners, and general liability insurance affords them the opportunity to purchase only one insurance plan against all four different types of exposure, rather than four separate policies.

Just How Much Coverage Is Provided?

There are areas of certain small businesses which require additional coverage beyond that which is offered by a CGL, but the standard coverage provided against the aforementioned “big four” liabilities is usually more than sufficient for most ventures. While the exact amount paid by each policy may vary greatly, as a general rule of thumb, all commercial general liability insurance plans cover the fees associated with defending and settling against a covered claim. If the particulars of your business make you susceptible to the possibility of extremely large judgments against your business, you may want to consider supplementing your CGL with an umbrella policy.

What Is An Umbrella Policy?

The expression “umbrella policy” means a type of coverage that can be bought to safeguard against unusual claims that exceed your basic CGL’s limits. When your legal expenses or the amount of a judgment against your company be higher than the coverage stipulated by your policy, the umbrella policy covers the difference so as to protect your assets. Basically, the umbrella policy is used to cover you against legal fees and judgments that exceed your standard general liability insurance plan’s limits.

Not every business needs an umbrella policy, but given their relatively low cost and great potential value, these types of policies tend to be worth having anyways. The sum of additional monetary coverage offered by umbrella insurance can be adjusted to fit your business’ unique profile along with your budget. As with any form of insurance policy, umbrella coverage plans vary greatly in the amount of additional protection they provide, and can be tailored to suit your particular needs.

Summarizing The Advantages Of A CGL

In addition to the fact that a CGL will cover the four most important things to a small business owner (damage to property, bodily insurance, advertising claims, and personal injury claims), it also does this in the most-economical manner possible. By combining multiple individual plans into one comprehensive policy, it is almost always less expensive than it would be to purchase each of the policies individually.

If you are a new business operator, or are merely interested in improving the quality of coverage on your existing venture, the commercial general liability insurance policy is definitely the place to start.

Being a business owner in today’s litigation-happy society includes many risks and ensuring you adequately protect your private, and professional, assets is essential. Fortunately, commercial general liability insurance is an inexpensive, highly-effective way to do this. By shopping on the internet for this type of coverage, you can often find the perfect amount of protection at a price that easily matches your financial budget.

For more helpful information on commercial liability insurance be sure to visit Robert’s site on business liability insurance!

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