Liability insurance, also called commercial general liability (CGL), covers four categories of events for which you could be held responsible:
- bodily injury
- damage to others’ property
- personal injury including slander and libel
- and false or misleading advertising
CGL insurance typically covers three types of legal damages for which you may be sued:
- Compensatory damages, financial losses suffered by the injured party and future losses they may suffer as a result of an injury;
- General damages, non-monetary losses suffered by the injured party, such as “pain and suffering” or “mental anguish;” and
- Punitive damages, additional penalties and charges assessed against you or your business to deter future bad behavior.
- Claims of sexual harassment, wrongful termination of employees, failure to employ or promote, or race and gender lawsuits. These and other employee-related claims must be covered by employment practices liability coverage. The cost of employment practices liability insurance depends on specific factors such as number employees and whether the company has been sued in the past. These plans also cover legal fees associated with defending a related lawsuit.
- Claims related to operating a vehicle. If your business owns vehicles, you will need separate commercial vehicle coverage to protect against accident-related liability claims.
- Employee claims for work-related injury or loss. Such losses typically are covered by workers' compensation insurance. Note that business owners, independent contractors, domestic employees in private homes, farm workers and unpaid volunteers typically are exempt from workers’ compensation eligibility.
- Professional liability for errors and omissions such as failure to provide appropriate advice, errors in the delivery of professional services causing harm and failure to meet professional standards of practice.
- If someone falls while visiting your business, or if a customer is hurt by a product you sell, you can be held responsible. That’s the risk business liability insurance covers.
- We invite you to contact our agency to discuss your specific situation and secure the needed protection.