If you are a small business owner, you will need to be well prepared to deal with a lot of aspects of your business’ operations, including all the legal issues that may arise. Typically, any business organization is exposed to a lot of liability risks, which implies that your company could be held responsible for damages to a third party as per the law. No matter how careful you are with your business operations, there may be certain situations that may arise and with a good commercial general liability insurance cover, you can mitigate the losses that you may experience thereby.

Business insurance

Commercial General Liability Insurance – what is it all about?

When you are in any business, you will be offering a product or a service to your customers. Commercial general liability insurance will protect your organization in cases when the products or services you offer have caused any physical or property damage to any third party, such as your customers, suppliers, and other stakeholders.

The good thing about CGL policy coverage is that it will protect your organization and your staff for onsite and offsite situations. This implies the insurance coverage will still be applicable to your business operations overseas.

Here are the details on how a CGL policy can help your business in case of the two most common situations as mentioned above:

#1. Physical Injury

One of the most common liabilities that your organization may face will be with regard to physical or bodily injury to any people connected with your business. This could include your employees, your customers, maintenance officials working on your business premises, suppliers, vendors or any other people visiting your premises. The liability that the business can face in this regard could be with regard to the financial losses due to medical costs, lost wages et al.

A situation such as employees in your manufacturing process get hurt due to any machinery or there could be a customer visiting your premises who got hurt there. Not necessary that your business is directly responsible for the injury, but there is a good possibility that there could be a lawsuit that you will need to face. With the CGL insurance, you can mitigate all such losses.

#2. Property Damage

This is a more serious situation when your business organization is considered to be the cause of a property damage of any third party. This usually happens with small businesses that conduct their operations offsite such as a catering business and the client reports a property damage. The CGL policy can help you mitigate the costs associated with property damage involving your business.

Some business owners may think the CGL insurance is something that their small business does not need simply because the premiums are seemingly expensive. However, the fact remains that no matter how small your business, it is always at risk. And considering the above-mentioned situations, which are rather common, the insurance premium amount that you pay for the insurance will any day be much less than compared to the legal charges and compensation your business will owe in case involvement is legally proven.