Commercial General Liability insurance (CGL) is designed to protect small-business owners from claims of injury, property damage, and negligence related to your business activities. The indemnity provided by liability insurance coverage helps your clients’ businesses recover any costs associated with having to mount a legal defense in the event that a claim must be defended. A General Liability Rating system helps Program Administrators and MGAs, along with the insurance carrier, determine the best rates for each particular business model.
Commercial General Liability is a must-have insurance policy. In fact, many clients will require that a CGL policy with certain limits in place before they’ll sign a contract and agree to do business. This is due in part to the possibility of becoming embroiled in a costly legal situation.
CGL protects each client from a slew of possible concerns
If someone, say a customer, or vendor was to accidentally slip and fall and sustain a serious injury requiring hospitalization and perhaps surgery, a CGL insurance policy protects those businesses by providing much of the financial resources necessary to keep them operational whenever such unexpected events occur. This can be the difference between having the means to survive a costly settlement or they might end up losing the entire business.
After all, the costs of defending or investigating a suit or claim of this type, including court costs, witness fees, attorney’s fees, and police report costs could quite easily be insurmountable without coverage. Plus, for those involved in a joint venture or partnership, all of the partners, members, and their spouses are protected if they are additionally sued for something they do in an official capacity related to the company.
It may be hard to imagine how a small business could cause another person serious harm or even death, but these are real possibilities that should be explored. However, it’s good to know that if any one of your clients is ever held responsible for someone else’s injury, their general liability insurance policy will save the day. The use of a General Liability Rating system will help you determine the cost of the coverage and get them desirable coverage at an affordable price.