What's the Most Important Insurance for Businesses?

Written by on 1/11/2018 7:36 AM in , , , , , . It has 0 Comments.

Commercial General Liability insurance, commonly referred to as a CGL policy,  is the most important insurance coverage a business owner can have.  This insurance coverage ensures that the business, and business owner, is protected in the event of injury to a person, or property damage caused by the insured, in an area associated with the business.

The commercial general liability policy includes various different coverages as follows:

Bodily Injury and Property Damage Liability – For example, if a client slips and falls on your property because you did not salt or sand properly, or you are plowing a client’s property and cause damage to part of the property, these things would be covered under this policy coverage.

Personal Injury Liability – This coverage includes coverage for false arrest, wrongful eviction of a person from your property, or oral slander or libel.  For example, if you wrongfully detained someone on your premises because you believe they were stealing only to find out they were not, this coverage would respond to pay for any damages.

Medical payments – This is a no fault coverage, and is more an offer of good will to prevent serious injuries even when not at fault. An insured can call an ambulance when someone is injured on or near the premises, regardless of whether they are at fault or not.  This allows the injured person to obtain medical attention faster, which can also result in lower issues arising out of the injury.

Tenants Legal Liability – If you are renting a property and something your business did caused a fire which damaged your entire building, this policy coverage would cover damage to the building as a whole. 

Under a commercial general liability policy both the owner of the company, as well as any employees are covered.  So, back to the plow truck, if you have an employee driving that truck and they cause property damage, they would be covered.

It is also important to note that with any insurance policy there are also exclusions that must be noted, some of the more common exclusions related to a commercial general liability policy are pollution, nuclear energy, and war risks.  

The commercial general liability policy is a very broad policy, and it is impossible to sum it all up in a short article.  If I’ve done nothing else, I hope I have helped you understand the importance of protecting you and your businesses assets.  For further information, please call or email us today at 1-888-245-4741 or fairway@fairway.ca

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