Business Insurance Knowledge Center

How Does Commercial General Liability Insurance Work?

Commercial General Liability Insurance protects the assets of a business when it is sued for bodily injury, property damage, personal injury and injuries caused by false or slanderous advertising.

How do I get Commercial General Liability Insurance?

Although you are not required to carry Commercial General Liability, without it, you’re leaving your business vulnerable to financially devastating lawsuits. A simple application process with a qualified agency will get your business on the track to protection.

What Does Commercial General Liability Insurance Cover?

In the event that your business is sued, Commercial General Liability Coverage will not only protect your assets, but will also cover all business partners and their spouses, executives, stockholders, subsidiaries and employees.

How Much Should Commercial General Liability Insurance Cost?

The cost of Commercial General Liability depends on the location of the business and its primary activities. The size of the business, physically and fiscally, is also factored into the policy rate.

Additional Commercial and Business Insurance Options

To further protect your business, consider purchasing additional insurances. An umbrella policy will cover the policyholder beyond the limits of the primary policy, while a Business Owner’s Policy (BOP) wraps Commercial General Liability with Property Insurance and may even cover lost income as a result of a lawsuit.

Potential Workplace Hazards

The risk factor takes into account the job conditions of each trade. Trades that work with electricity, from heights or with chemicals, will have more potential workplace hazards than trades that do not.

Risks By Trade

From the business classification, companies will be further segmented by trade. A calculated amount of risk is initially prescribed to each trade but could increase based on individual year-end accident reports.

Business Classifications

The type of work performed and risk involved will determine your business classification, which then establishes how much coverage is needed. Rates change from one classification to another.

Bonds and Bonding – How to get a bond

A performance bond is like an insurance policy for the homeowner or general contractor. It ensures that the work contracted will be completed or the owner has the right to be compensated for damages caused by incomplete work.

Glossary of Business and Commercial Insurance Terms

The language of insurance can be confusing. Learning key words and phrases will help you when negotiating rates and policy terms.

Useful Business and Commercial Insurance Links

For additional information regarding Commercial General Liability Insurance, consider these resources.