Commercial General Liability Insurance
CGL for your Business Insurance Policy
Understanding Commercial General Liability Insurance
Liability is a fancy word for being responsible for something. Business owners are responsible for lots of things, but when are they actually legally liable?
Liability is based on the definition of reasonability. What would a reasonable person do in the same situation? What would they not do? What could they have done in advance as prevention?
Examples of negligence that may result in your bussiness being liable:
- You are mowing a client’s grass and shoot a rock through a client's picture window.
- You are mowing a client's grass and shoot a rock and hit a client in the head.
- Sparks from your business start a bush on fire and the fire spreads to neighboring businesses
- You inadvertently say something about another person or business and it is libel or slander. This also goes for accidental copyright infringement.
- You hit a power line with a piece of tall equipment.
- You are at a conference and flood the bathtub at the hotel.
- Your employee smokes a cigarette while on duty and it ignites a fire on someone’s property.
- You or your staff are driving a vehicle for work purposes and get into an accident.
- Your products you have manufactured cause injury or disease to someone (ie: you used the wrong chemical mixture in the process).
- Your snow isn’t cleared soon enough or well enough, or your sidewalk is icy, and someone slips and falls and hurts themselves on your property.
The good news is the Commercial General Liability Coverage on your Commercial Insurance policy is designed to step in when you are deemed negligent.
Key components of CGL (Commercial General Liability Insurance)
- Medical rehabilitation & Death Benefits of an injured (or worse) party due to negligence.
- Premises Liability, for things that happen at or related to your location.
- Products Liability, for claims arising from products sold or manufactured by your business. (Manufacturing, distribution & retail)
- Legal defense costs from being sued due to negligence
- Completed Operations, for claims related to services after the work has been completed. (Construction & Contractors are the most common)
How expensive are CGL claims?
Commercial Liability are often the highest value insurance claims a business will encounter, as all of the above are generally very costly. Having a liability loss, without proper insurance coverage, is enough to put most companies out of business. This is why the amount of Commercial General Liability Coverage on your Commercial Insurance Policy in Saskatchewan will usually be the highest of any listed coverage.
Tailing CGL Insurance to YOUR Business
Things that need to be taken into consideration include:
- Industry Risks: Every industry is different. Understanding industry specific risks helps in choosing the right coverage.
- Business Size & Revenue: Larger businesses with higher revenues generally face greater risks and may require higher coverage limits. Small businesses are not immune to these risks, they will just require different amounts or types of coverage, and they will be priced accordingly.
- Location: Areas of higher foot traffic have higher risks.
Working with an Insurance Broker
Using an Insurance Broker can help you determine what types of liabilities your business could face, what is and isn’t covered by your insurance policy, and where you should layer extra levels of protection.
Here is how we can help:
Risk Assessment: Identify potential liability exposures unique to your business.
Policy Customization: Tailoring a CGL policy that fits your needs and budget.
Claims Assistance: Providing support and guidance during the claims process.
Ongoing Support: Regularly reviewing and updating your policy to keep pace with your evolving needs and industry changes. There are endorsements that can be made to your policy if you require other sorts of liability as well, so these reviews are very important to make sure there are limited gaps in coverage!
In the world of business, it is often not a matter of if an incident will happen, it is a matter of when. With the right CGL insurance in place, you can face the future with confidence, knowing you are prepared for whatever comes your way.
Do you need a different kind of info on a different kind of liability insurance?
Check out our blog on Personal Liability insurance here: https://borainsurance.com/personal-liability-insurance-saskatchewan/
or Learn More Here: https://sgicanada.ca/liability
Ready to find out more about CGL for your business?
Drop us a line today for a free quote!
