Before we can get into some specifics of Commercial General Liability, let’s examine what is “liability”?
Black’s Law Dictionary defines Liability Insurance as that form of insurance which indemnifies against liability on account of injuries to the person or property of another.
There are many risks involved that you may not have considered and this is why the right coverage is important. Commercial General Liability Insurance is designed to cover three types of damages. They are Bodily Injury, Property Damage and Personal and Advertising Injury.
Bodily Injury means bodily injury, sickness or disease sustained by a person, including death resulting from any of these at any time.
Property Damage means physical injury to tangible property, including all resulting loss of use of that property and loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the occurrence that caused it.
Personal and Advertising Injury means injury, including consequential bodily injury, arising out of one or more of the following offenses:
a) False arrest, detention or imprisonment
b) Malicious prosecution
c) The wrongful eviction from, wrongful entry into, or evasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor.
d) Oral or written publication, in any manner, of material that slanders or libels a person or organization or disparages a person’s or organization’
e) Oral or written publication, in any manner, of material that violates a person’s right of privacy
f) The use of another’s advertising idea in your advertisement
g) Infringing upon another’s copyright, trade dress or slogan in your advertisement.
Commercial General Liability claims can arise from the following exposures:
1. The ownership, maintenance and use of premises
2. The conduct of operations, including the ownership, maintenance and use of “mobile equipment”
3. Manufacturing, distributing or selling “products”
4. “Completed operations”
A recent survey of small business owners have showed that that most of them worry about claims. What protections do you have in place to avoid or minimize risk?
Without the proper coverage, any risk that you are not properly covered for can ruin your business. Most small business owners do not have enough money to cover perils out of pocket. You want to be protected from the worst case scenario, even if a loss or injury is not your fault you are still responsible. Business liability insurance is another expense for your business, but it is better to have a plan in place than a large expense later should the worst happen.
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