Understanding Commercial General Liability


Commercial general liability protects against nuclear verdicts, which can destroy a company with irreversible consequences. Nuclear judgments, jury verdicts awarding more than $10 million in compensatory and punitive damages, occur more frequently as a general lack of public trust in large companies combines social media and legal marketing influences. With product liability cases accounting for 23.6% of nuclear verdicts, businesses should strongly consider commercial general liability coverage as protection against the potential financial devastation from a prominent lawsuit.

What Is Commercial General Liability?

A commercial general liability insurance policy protects a business by covering specific issues that may prompt a lawsuit. These policies typically protect against claims of property damage and personal or bodily injury caused on the company’s property or as a result of the company’s products, services, or operations. Commercial general liability comes in two forms. 

  • Claims-made policies cover claims whenever they are filed, no matter when the event occurred, as long as the policy is active at the time of filing. These policies are helpful when there is a time lapse between the occurrence and the claim filing.
  • Occurrence policies cover claims based on when the event occurred; they can file on inactive policies as long as the event happened while the policy was active.

Things To Know About Commercial General Liability

A commercial general liability policy protects the company against the following claims or lawsuits that may arise in the course of doing business:

Bodily Injury

It is common and something that general liability insurance covers. It covers medical costs for injuries to a customer or employee on a company’s premises or during business.

Copyright Infringement

If someone accuses a business of utilizing another person’s work in their product or advertising without permission, this type of insurance policy will go into effect.

Damage to Property

If a customer or client’s property suffers damages on the company’s premises or during the course of doing business, a general liability policy would cover the cost of the claim.

Damage to Reputation

Liability policies cover damages if a company harms the reputation of another through public comments or other events while doing business.

Advertising Injury

Defamation of an individual, company, or employee gets coverage under a commercial general liability policy.

Who Needs It?

Commercial general liability insurance can be a great investment opportunity for any business. The following corporate scenarios occur with more frequency than most businesses would prefer. Companies that partake in one of these bullet points have an increased level of lawsuit risk, rendering a general liability plan even more valuable:

  • Insurance coverage is required to obtain work contracts.
  • The facility is open to the public.
  • The company advertises in print, audio, or visual media.
  • Using social media as a professional tool.
  • The company utilizes third-party business locations.
  • The business employs temporary workers.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.