What is the Difference Between General Liability and Commercial General Liability?
There is not much difference between General Liability Insurance and Commercial General Liability. Both are essentially the same thing. The difference in terminologies might have meant something once. But now, the only difference is, one of the terms is more wordy than the other.
General Liability was once known as Comprehensive General Liability. It is an old term. It refers to a special kind of coverage which aims to protect a business. Specifically, it protects a business from risks of liability that may arise in the course of doing its business operations.
Definition – Commercial General Liability Insurance
A Commercial General Liability Coverage does not provide protection to the company’s assets. This includes the building itself, equipment contained within the building, or any other form of property. Instead, it provides coverage against many forms of liabilities that a business can potentially face. It protects your corporate interests from the potential damages that are caused by liabilities, such as injuries and property damage.
Commercial General Liability in America
This policy is especially invaluable in the United States of America. The main reasons being, that our society is highly litigious. People flock towards the courts for a settlement over the slightest issue. You risk losing your assets, your company, and your reputation if you do not handle this issue appropriately.
Necessity of the Liability Policies
Commercial General Liability Insurance is very important in our litigious society. Instead of a genuine motive to sue, many people actively seek a reason for a quick payout. They sue for any number of reasons, and are often awarded huge compensation package by the court. This encourages some people to always remain on a lookout for a reason which can net them a substantial compensation.
The defamation which results from a lawsuit is reason enough for many companies that wish to avoid litigation. Even in the absence of just cause, they are forced to pay some funds to keep the matter under wraps. Businesses which have a lot of people coming in contact with their premises, products and advertisements are more at risk.
A lawsuit can cost a lot. If the judgement goes against you, the punitive damages can cost hundreds of thousands in dollars. Sometimes, they can even cross the million-dollar threshold.
This is the main reason Commercial General Liability Insurance policy is one of the most important ones in corporate sector. Your business can face complete ruin over the course of a single case, if you do not possess this coverage. You can face a lawsuit when;
- A client, visitor, or even a trespasser gets an injury in your business premises.
- A client gets an injury because of a malfunctioning product or substandard service.
- Your employee damages the client’s property.
Extent of Coverage in Commercial General Liability Insurance
Following are a few coverages which are included in the Commercial General Liability Coverage;
- Products Coverage
It is also known as ‘Completed Operations Coverage’. This coverage provides protection against a liability suit that pertain to your products or services. The client can sue you upon receiving physical injury or property damage due to your product or service. The remise behind this litigation is that; the client expect you to make use of all reasonable means to ensure your product / service is free of defects.
- Premises Coverage
This coverage provides protection against bodily injuries or property damage on your business premises. The coverage can even extend to include the injuries or property damage, at your employee’s hands, on your client’s premises. The elevator or escalator coverage is also generally part of it.
- Independent Contractor’s Coverage
This coverage provides protection against acts of negligence by an independent contractor. Such negligence could result in physical injury or property damage to a client.
- Physical Injury Coverage
This provides protection against claims of physical injuries to a client. It might also include the claims of damage to reputation, character and position or a person. The lawsuits which rise from the claims of slander or libel might also have coverage in this clause.
- Advertising Coverage
This provides protection against the claims of damage due to an advertising campaign. A company can file this claim if they perceive an ad as disparaging. A private citizen can also file this claim if they feel an ad has made false claims. defamation of character is generally a part of this coverage.
Acquire the Best Commercial General Liability in Texas
SG Financial Inc. has a long history of maintaining its position as the Best Insurance Agency in Plano, Texas. We can provide you with the Best Commercial General Liability in Plano, Texas. Hence, we can work to ensure your corporate interests remain safe from litigations.