Situations Covered by Commercial General Liability Insurance


Commercial general liability insurance is a type of insurance that protects businesses from claims arising from injuries or damages that occur as a result of business operations. It can help cover the cost of legal expenses, settlements, and judgments that may be awarded to the claimant. But in which situations can companies use CGL? Here are some ideas.

1. Bodily Injury

One of the most common reasons businesses purchases CGL is to protect against bodily injury claims. It could include an employee injured while working on the job or a customer being wounded while on the company’s premises.

While CGL insurance can be a valuable asset for any business, it’s essential to understand that it is not a replacement for other types of insurance, such as workers’ compensation or property insurance. Nor does it cover every possible liability claim that could be filed against your business.

2. Property Damage

As a business owner, you know that many risks are involved in running your company. You could be sued for various reasons, including personal injury, property damage, or even defamation. That’s why it’s so important to have commercial general liability insurance.

CGL insurance can also provide coverage for property damage claims. For example, the business could be held liable if a customer’s car is damaged while parked in the company’s parking lot. CGL insurance can help protect the business from paying out of pocket for these claims.

Do I Need CGL Insurance?

Every business needs a CGL insurance policy because there are always risks involved in running a business. Even if you are very careful and take all the necessary precautions, there is always a chance that something could go wrong.

CGL insurance can help protect your business from financial ruin if you are sued or held liable for damages. The type of insurance can help cover the cost of legal fees, settlements, and judgments.

Consequences of Operating without CGL Insurance

If you do not have a CGL insurance policy and your business is sued, you will be responsible for all the legal fees and any damages awarded to the plaintiff. It can quickly bankrupt your business, especially if the injuries are extensive.

While a CGL policy can’t protect your business from all legal action, it can help reduce the financial impact of a lawsuit. If you don’t have this type of insurance and your business is sued, you’ll be responsible for all legal fees and any damages awarded to the plaintiff.

Be sure to follow all safety regulations and industry best practices. You should also have a solid risk management plan in place. Of course, carrying adequate CGL insurance is one of the best ways to protect your business from the financial devastation of a lawsuit.

Businesses Needing a CGL Insurance Policy

If you own a business that provides a product or service to the public, you need CGL insurance. It includes companies that manufacture products, provides professional services, or offer goods or services to the general public.

CGL insurance is essential for companies that provide professional services such as accounting, law, consulting, and architectural design. If you own a professional service business, you need CGL insurance.


Commercial general liability insurance can help to protect your business from all potential risks. This type of insurance is essential to focus on running your business without worrying about the financial consequences of a lawsuit.

Kirkham Insurance is an insurance agency offering home insurance policies in Lethbridge. But aside from policies taking care of and protecting homes, we also have commercial insurance brokers managing our clients and ensuring they get the best deals possible. Shop for other policies, including auto and life insurance, on our website or speak with insurance brokers near you today.

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