Commercial Liability Insurance

As a business owner, you face an abundance of risks. And, no matter what industry you're in, owning and operating a business leaves you vulnerable to potentially devastating claims. Commercial liability insurance is designed to protect business owners so that your company can grow and flourish. Understanding what commercial liability insurance does and does not cover is the first step in formulating an all-encompassing business insurance package that provides total protection with a reasonable premium.

Commercial liability protection, also known as commercial general liability (CGL), usually reimburses you for the following costs:

• Bodily injury/Medical payments - If you or one of your workers is responsible for an accident that results in physical injury, CGL will pay for the cost of medical treatment.
• Property damage - If you or one of your workers is responsible for damage caused to another person's property, CGL will pay for repairs or replacement costs.
• Defense costs - Lawsuits are expensive—no matter the outcome. If you are involved in a lawsuit, general liability will cover your attorney's fees and court costs.
• Personal injury - Libel, slander and defamation claims are all covered under a general liability policy.

How much does commercial liability insurance cost?

The cost of a commercial liability policy depends on several factors:

• Industry - Some industries have a higher perceived risk than others.
• Location - The state in which your business is located can impact the amount of coverage you need.
• Perceived risk - Historical data is used to estimate the likelihood of a claim being filed against you.

What if a claim surpasses the limits of my CGL?

All policies have payout limits. If claim and payout amounts owed surpass your policy limits, you will be responsible to pay the remaining amount out of pocket. For this reason, we recommend that business owners consider umbrella insurance—also known as excess liability insurance. Excess liability insurance picks up where your CGL leaves off.

Liability insurance and umbrella insurance can be bundled with other forms of coverage, such as commercial property insurance, to create a complete business owner's policy (BOP).

For more information about the exact types of coverage your business may need, contact Karl Weidel Insurance at 609-599-2588 or fill out the form on this page.