What Is Commercial General Liability Insurance?
Understanding Commercial General Liability Insurance
Commercial General Liability (CGL) insurance, known as Public liability in Australia, is essential for business owners’ protection from claims of injury or damage caused by third parties. Whether you own a small shop, run a construction business or operate an online store, commercial general liability insurance may offer coverage for any accidents that might occur.
To find expert guidance on suitable coverage options, contact Smart Business Insurance. With over 800 five-star reviews^, the experienced team of brokers will help navigate your insurance needs.
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What Is General Liability Commercial Insurance?
Commercial general liability insurance, also known as public liability or general liability insurance, covers businesses against claims of third-party bodily injury and property damage that may occur in daily operations. The term originated in the US and is important for business owners worldwide to protect their business and personal assets.
What Does Commercial General Liability Insurance Cover?
CGL insurance offers coverage against a variety of risks, including:
- Third-Party Bodily Injury: If a customer is injured on your premises, this may cover the medical and legal expenses.
- Third-Party Property Damage: Cover against accidental damage to someone else’s property due to your business’s operations.
- Product Liability Cover: If a product you sell, manufacture or distribute causes harm, this may cover any related claims.
- Legal Defence Costs: If your business faces a lawsuit, this cover may assist with legal fees and related claims.
What Is Not Covered by Commercial Liability Insurance?
While CGL insurance covers many risks, it doesn’t cover everything. For professionals who offer advice or services, they’ll need to consider taking out professional indemnity insurance to support claims of malpractice or unprofessional advice. Whereas businesses that rely on digital systems and platforms may want to include cyber liability insurance to enhance their protection against modern risks like data breaches. CGL insurance typically doesn’t cover workers’ compensation (claims for employee injuries), damages, or injuries caused by intentional wrongdoing or fraud, so you may need additional policies for complete coverage.
Who Needs Commercial General Liability Insurance?
CGL insurance is essential for any business that interacts with the public, handles products, uses subcontractors, or works on client sites. This may include:
It’s important to note that while CGL insurance is not legally required in all industries, many Australian states have licensing rules for certain trades, like electricians and plumbers. These regulations require you to have public liability insurance in place before you can legally operate. To find out your state’s legal requirements, contact our Smart Business Insurance brokers.
How to Choose Suitable Commercial General Liability Insurance
To choose a suitable commercial general liability insurance policy it’s important to factor in your business’s specific risks. Consider the size of your business, the industry and ask questions such as ‘What types of liabilities do I need to protect my business from?’ and ‘Are there any extra coverages I need to consider?’. This will influence the amount and specificity of the coverage you need. Customising your policy, understanding exactly what you’re covered for, and reassessing it as your business grows is crucial to providing suitable protection.
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Don’t leave your business exposed to unnecessary risks. Commercial General Liability insurance may be a key part of your strategy to protect your business against unexpected claims. Contact SMART Business Insurance today for expert guidance on finding suitable commercial business insurance coverage. With over 800 5-star reviews^ and 11 years of experience, we’re here to help you protect your business. Call now for a consultation and quote.
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FAQs
What is the difference between general liability and commercial general liability insurance?
Both terms refer to the same type of coverage, protecting businesses from third-party claims.
How much does CGL insurance cost?
Broadform liability insurance (or general liability insurance) costs vary based on your business size, industry, and risk factors. Contact a Smart Business Insurance broker to discuss your commercial liability insurance requirements.
Can I bundle CGL insurance with other policies?
Bundling CGL insurance with other coverages, like property insurance or extras like cyber liability, may offer suitable protection for your business.
How do I file a claim?
If you need to file a claim, contact your insurance broker immediately. They’ll guide you through the process and advocate for a fair outcome.
What should I do if my business changes or grows?
It may be important to review your insurance regularly so it covers your expanding needs for a suitable business insurance solution.
^Based on reviews sourced from Google, Facebook, and ProductReview.com.au
