Comprehensive General Liability

Comprehensive General Liability (CGL) Insurance is a type of insurance that some local government units (LGUs) need before issuing a business permit or providing the Department of Trade and Industry (DTI) with the essential license to establish a business.

The policy protects many sorts of establishments from financial and legal obligations stemming from their business operations, including harm to another party’s property (property damage liability) or injury to another person (bodily injury liability).

Aside from the standard Premises Operations coverage, it additionally covers coverage for risks like elevator hazards, independent contractor hazards, product hazards, and contractual hazards.


Bodily Injury Liability & Property Damage

CGL coverage A protects you from losses resulting from bodily harm to others or damage to third-party property that you cause.

This section covers a lot of the topics we talked about earlier. This section of the policy is the most frequently used by your company, and it’s where the majority of your claims will occur.

Personal Injury & Advertising

Slander, libel, false arrest, and even unlawful eviction are all covered under CGL coverage B. Additionally, it gives limited coverage for inappropriately exploiting copyrighted material in your business. This section of the policy protects your company against concerns that may arise while advertising, such as those mentioned above.

Coverage for Medical Payments

Medical payments coverage is a sort of liability insurance coverage that ensures that an injured individual is reimbursed for medical or funeral expenditures incurred as a result of an accident, regardless of responsibility, as long as the policy criteria are met.

Other types of liability coverage to consider include liquor liability, directors’ and officers’ legal liability, and/or pollution liability. An insurance company can help you figure out which arising endorsements are acceptable for your business operation.

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Exclusions for Premises Liability

A premises liability exclusion is one of the most prevalent ways insurance companies decrease coverage on insurance plans. This limits insurance coverage to a single or a limited number of addresses, usually the business address.

Coverage does not follow your business activity from location to location with this endorsement in place. This is inconvenient because a general liability policy without endorsement would cover your business anywhere in the country. If the policy was endorsed with this exclusion or limitation, it would only cover claims that happened at the address specified on the policy. This could have an impact on coverage for off-site commercial activities and parking lot liabilities, among other things.

The following are some examples of scenarios when CGL would be required:

A customer enters your facility, which already has recently been washed and cleaned, resulting in incredibly slippery floors. The customer trips and falls to the ground, breaking their leg.

When one of your electrical company’s employees visits a customer’s home for an electrical wiring installation, he or she sparks a fire by accident.

As a result of an advertisement you posted, someone alleges libel or slander.

Particular Points to Consider:

A company’s commercial liability insurance policy may require it to list other companies or individuals as “additional insured” depending on its business needs. It is common for a business to enter into a contract with another entity.

For example, if an automobile repair garage hires ABC Co. to clean their facility, ABC Co. may compel the garage owners to add ABC Co. as an “additional insured” on their commercial general liability insurance policy.

Types of Comprehensive General Liability Insurance

It is critical for a company to understand the difference between a claims-made policy and an occurrence policy when acquiring commercial general liability insurance.


When a claim is made, regardless of when the claim event occurred, claims-made insurance provides coverage.


An occurrence policy differs from other types of policies in that it covers claims that occurred while the policy was active, even if the policy has since expired.

Be proactive in your approach. Four months ahead of time, provide your agent or insurance market with claims history, coverage options, and risk management measures.

Respond swiftly to your agent’s requests for information. Make a note of everything you say to your representative. Take specific notice of important details such as insurance limits, deductibles, the requested effective date, and any past acts of coverage that may be relevant.

Make sure your claims history (loss runs) is current. You can ask your insurer for a claim history. Any company, regardless of size, should be prepared to deal with claims history.

All loss control/risk management procedures, including completed training, should be updated and documented. Prepare to demonstrate why your company is and will continue to be a good risk.

Examine your insurance limitations and make any required adjustments. If your company is expanding, for example, you may want to consider raising your limitations.

Consider increasing your deductible. Assuming additional risk in the form of larger deductibles or lower policy limits can help you save money on your insurance premiums.

Allow for rises in premiums. When planning your budget, allow for premium increases or additional premium costs as a result of an audit.

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