The Recommended Minimum Insurance Coverage

Being the consummate all-in-one policy for small and medium-sized businesses, commercial general liability coverage is sometimes viewed as the sole type of business insurance that a new firm needs. While large firms that employ many hundreds of people, generate comparatively-higher revenues and operate from several locations also require a more advanced approach to insuring their assets, the basic CGL (commercial general liability) plan provides affordable coverage that is usually quite adequate for smaller businesses.

What Types Of Claims Are Insured By A CGL?

Because most claims filed against businesses fall under one of four categories (bodily injury, personal injury, advertising injury and damage to property), the standard CGL specializes in providing the maximum level of coverage at the least expensive price in these fields of liability. The reasoning behind this strategy is to provide the consumer with the most-comprehensive business insurance coverage possible, at a price below what would be paid if she or he were to buy each of the four policies separately.

Just How Much Coverage Is Offered By A CGL?

There can be areas of certain small businesses which require additional coverage beyond that which is offered by a CGL, but the standard coverage provided against the aforementioned “big four” liabilities is generally more than sufficient for the majority of ventures. Although the exact amount insured by each policy may vary greatly, as a standard rule of thumb, all commercial general liability insurance plans cover the fees connected with defending and settling against a covered claim. If the nuances of your business open you up to the possibility for extremely large judgments against your business, you may want to consider supplementing your CGL with an umbrella policy.

About Umbrella Policies

The loosely applied term “umbrella policy” represents any type of supplemental coverage that can be purchased to safeguard the insured against monetary damages or fees which exceed his base policy’s limits. When utilized in addition to a CGL, the purpose of the umbrella policy is to protect the business owner from highly abnormal, unforeseen events that result in potentially catastrophic judgments being levied against his personal and business assets.

Umbrella policies may be looked at as an additional insurance policy that protects your business if your business insurance fails to deliver. Since they are highly affordable, many companies decide to purchase them simply for the relative sense of added security that they provide.

CGL Is The Minimum Insurance For Businesses

On top of the fact that a CGL covers the four most vital things to a small business owner (property damage, bodily insurance, advertising claims, and personal injury claims), it also accomplishes this in the most-economical manner possible. By combining multiple individual plans into one comprehensive policy, it’s usually more cost-effective than it is to purchase all of the policies individually.