Commercial general liability provides worldwide cover for both territory and jurisdiction. Business operations present across the world could be covered, with the ability to defend litigation abroad
Commercial liability insurance indemnifies cost incurred to defend a claim including lawyer and consultant's fees. Policy can be issued on the basis of either Right to Defend or Duty to Defend
Comprehensive general liability insurance can be tailored to suit unique requirements of the business model or a specific contractual need e.g., waiver of subrogation and additional insured clauses
A single combined general liability policy can cover multiple factories, and office premises spread across the country or globally. Certificate of Insurance can be issued for each location separately
Numerous Commercial General Liability Insurance plans are available. These include occurrence-based plans, Professional liability plans, and Broad form commercial plans. These include property damage, injuries, or losses during services or because of the company's product, or on business premises.
Some nations have deemed CGL coverage mandatory for certain companies because of to the associated dangers. While not mandatory in India, it is still advisable to secure CGL for added protection.
Most groups have at least one basic CGL coverage, which has benefits over different rules. CGL is large in its insurance and encompasses most dangers related to service or product companies. They also call it General Liability coverage.
Claims can price a fortune to an enterprise, resulting in loss or even shutdown of the employer in some cases. Therefore, investing in long-term Commercial General Liability coverage might seem like an unnecessary expense initially. Still, this policy has helped numerous organizations stay afloat amid hefty claims and allegations.
Commercial General Liability Insurance is basically third-party liability insurance. It contains features of Product and Public liability insurance.
Product liability includes all damages and losses caused by the company's product or services to a third party. This encompasses health-related damage, medical expenses because of product use, and property damage.
Public liability insurance protects against public claims and cases against a company. It includes settlements in court and a compensation fee in most cases. Additionally, it also covers premises hazards and operation miss-managements.
It helps to understand the difference between claims-based and occurrence-based CGL policies. A claims-based policy activates when a policy holder files a claim, regardless of when the incident occurred. For instance, if you sell wafers, and a customer develops a severe disease because of long-term consumption. The claim filing date holds significance, irrespective of the purchase date of the product.
The policy protects your business by covering liability claims, including those involving directors and officers. As a business owner, this coverage safeguards your assets and reputation. Additionally, considering workers' compensation and employment practices liability is crucial for comprehensive coverage.
The occurrence-based policy works from the time when the event of the claim took place. If the policy was active at the time of the event, you get its benefits even if it has expired in the present.
Let's see a few examples where Commercial General Liability insurance may help a company:
In all the above cases, companies face unexpected costs because of claims by users or customers. This is where a Commercial General Liability policy comes in and saves you a lot of headaches and capital.
The cost of Commercial General Liability insurance varies based on your chosen insurer, policy, business needs, and revenue. The most basic CGL or general business insurance usually costs from Rs 5,000 to Rs 20,000 annually for a small-sized business. The cost of commercial general liability insurance covers a wide range of risks and liabilities associated with insured premises.
However, businesses with more complex operations may have to pay higher premiums. Specific risky industries may get a higher because of high claim costs. Some companies even spend more than a Lac, on full-proof insurance policies.
This cost differs for each organization and changes with additional policies, deductibles, and other tailored options. Obtain quotes from various companies to get a better idea for your business.
Almost all businesses operating in the market are prone to certain risks.
Certain industries, like food and beverage, pharma, beauty products, and real estate, face an elevated risk of insurance claims. This results from a greater chance of un-intentional harm.
Service-based companies, including construction, transportation, healthcare services, etc., are also risk-prone. Financial or legal advisory firms may face claims of false promises or diss-satisfactory results. Even small-scale companies consider investing in a worthy policy because of un-predictable market shifts and conditions.
Every business needs a basic liability insurance to cover potential costs, it's a safe assumption.
While coverage scope differs for each policy, here are some fundamental factors of Commercial General Liability insurance:
These are the few limitations of the policy:
The following are the generally asked documents to purchase Commercial General Liability Insurance. Remember that some insurers may ask for additional documents as well.
You can directly approach insurance companies to enquire about the various CGL policies available. These companies provide all kinds of property, captive, and casualty insurance to businesses through their websites or offline offices. Talk to the advisors for consultation on the policies suitable for your needs.
You can also buy the policy through an insurance brokerage firm such as SecureNow. Numerous advantages come with making purchases through a mediator. Access to data from numerous insurance companies can result in cost savings and improved insurance options.
You get expert advice and opinions on your policy. Obtaining customized solutions for your needs is easier. SecureNow provides complete support and assistance during and after the purchase of a policy.
These are the steps to follow to buy or renew Commercial General Liability insurance from the SecureNow website:
SecureNow offers these benefits to its customers in a market with numerous companies:
Leverage specialized underwriters and international experts unique for each line of business.
Works with all the leading insurers to discover the best price for most comprehensive features.
Get cover note issued within 24 hours. All service requests are resolved in pre-defined TATs.
Manage all aspects of claim including insurer, surveyor & TPA co-ordination, and documentation.
Receive risk diagnostic reports, themographic studies, policy analysis, and wellness programs.
Access your insurance policies through single login; service requests, MIS, and renewal alerts.