Third-party lawsuits arising from property damage or injuries are covered by CGL insurance. Here are some of the most prevalent scenarios in which this coverage will be beneficial to your company:
Bodily Injuries: You might have a hard time visualizing a circumstance in which a customer is severely or fatally wounded, depending on your line of business, but it might happen. Your general liability insurance will pay any related medical expenses if something goes wrong.
Property Damage: Your company's activities or inactions may cause damage to someone else's property. Your general liability insurance would cover both the damage and any loss of usage in this case.
Operational Costs: If your company manufactures goods, general liability insurance will cover any injuries that may occur due to the manufacturing process.
Personal Injury: You can find yourself in a scenario where someone accuses you of injuring them somehow. Libel claims, slander, infringing another person's privacy rights or unjustly evicting someone would all be covered by your general liability insurance.
Product Liability: Not every accident or injury happens in the store. If you create and sell dispersed items or services, you can be sued if such things cause property damage or bodily injury to someone, no matter where they are.
Legal Expenses: Even if the lawsuit is ultimately unsuccessful, the costs of engaging a legal team and defending yourself in court if your firm issues could be significant. A lawsuit might also harm your reputation and cause you to lose money. All court fees, potential loss of income, and settlements resulting from the lawsuit would be covered by general liability insurance. Get in touch with us; our professional CGL insurance broker in Mississauga will guide you through the process.
What's Not Covered?
Some things are unlikely to be covered by your commercial general liability insurance, with the following being some of the more prominent examples:
Employee Injuries: General liability insurance does not cover employee injuries. You should be looking into worker's compensation insurance for this type of coverage.
Professional Errors: If you're sued for failing to uphold a professional standard of care, your general liability coverage won't cover you – that's what E&O insurance is for. For example, if you agreed to have someone's website up and operating by Black Friday but didn't, your client might sue you for losses incurred because they could not sell things during a busy online shopping season.
Employment Practices Lawsuits: This is something that General Liability cannot cover once again. However, if these concerns arise, proper employment practices liability insurance (EPLI) coverage will assist you in dealing with them.
Property Damage: This is covered by a different form of insurance. Commercial property insurance is a good idea if you want to safeguard your commercial property from theft, fires, or other weather-related damage.
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