If you have studied business in your schooling years, you would know that assets and liabilities are the most basic part of business. Asset is something that you own, and liability is something that you owe to someone else. Knowing these two concepts and being prepared to do what the situation requires in either of these cases is a part of good business planning. Liabilities can be especially dangerous as they drive money out of the businesses. That is why businesses buy a Commercial General Liability (CGL) insurance plan.
The policy was specifically created to protect businesses from a specific type of liability. The plan saves businesses from any legal liability that includes paying compensation in the case of property damage or physical injuries that happen to a third party as part of regular business operations.
It is a must-have product for all businesses that are into manufacturing or developing products and software for their clients and customers.
What is a Commercial general liability insurance plan?
CGL is a policy that aims to protect you from any financial loss that is caused by legal processes in the case of a fixed set of scenarios. These scenarios include death, physical injuries, property damage, and personal injuries that happened during business operations on your premises of conducting business. For example, it includes Fell, Trip, or Slip claim that can be filed by your client if they get injured by doing either of the three things mentioned on your office premises.
To avoid situations like this, it is extremely important that you maintain your premises in a good and safe manner and manufacture a great quality of product that can be safely used. The reliability of your product and the safety and security of your working premises are the biggest concerns for you. Any legal liability that arises out of these is what this policy addresses. The laws around these issues are very stringent. This is to maintain a balance between avoiding business losses and protecting third-party interests at the same time.
A commercial general liability insurance policy offers to pay the compensation that you are liable to pay in the case of any physical injuries and property damages. If these damages happen on your premises or as part of your regular operations, then you are liable to compensate the third party. However, depending on the injury or property damage, this compensation could be too much and could upset the finances of your business. This coverage is offered to anyone who is heavily involved in the operations of the business. This includes owners of the company, managing directors, operations head etc. It also includes sellers, manufacturers, and distributors. Moreover, a commercial insurance policy is applicable and beneficial for both industrial processes like construction, manufacturing, and non-industrial processes like operations in offices, multiplexes, hotels, etc.* Standard T&C Apply
Why is it important to have Commercial General Liability Insurance Cover?
If you have commercial general liability insurance, you can make sure that any liability issues do interfere with the progress of business operations. This, in turn, ensures that you can enjoy your peace of mind and focus on other parts of the business. Here is what having a CGL policy get you:
- You do not have to concern too much about claims made by a third-party regarding agitation, segregation, discrimination, etc.
- The insurance company covers any medical expenses that are included in the claim and is caused by physical or mental injuries, shock, etc.
- It also includes reimbursement for advertising infringements like a breach of trademark, etc.
* Standard T&C Apply
CGL plans are available both offline and online and top insurance companies in India offer such a plan for businesses. Also note that, Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
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