If you own a business or plan to start one, you’ll need commercial general liability insurance to protect your assets from unexpected costs. General liability insurance is also known as CG insurance. It protects businesses from the financial impact of either an individual claim or a series of related claims. Commercial general liability insurance policies help cover the risk of lawsuits, which give businesses the opportunity to make a profit. If your business has been newly formed or if its activities are risky, you should strongly consider purchasing this type of insurance coverage.
Understanding what this policy and commercial general liability insurance cost in India will and will not cover can go a long way toward helping you determine whether it’s right for your business and how much coverage you will need. Here are some things you should know about commercial general liability insurance in India before buying a policy.
How Does Commercial General Liability Insurance Work?
Commercial general liability insurance policies protect your business against claims of bodily injury or property damage through negligence or error. For example, if you negligently cause an injury to a customer or employee, that person may decide to file a lawsuit against you to receive compensation for his or her medical bills and lost wages. If you have commercial general liability insurance, your insurer will cover these costs up to the amount you’ve purchased in coverage for each claim. Commercial general liability insurance policies often come with other coverage types, including: –
Property damage – This type of coverage protects your business if it negligently causes damage to another person’s property, such as a car or a building.
– Legal defense – Insurance providers usually cover the cost of lawyers to help defend you against a lawsuit.
– Medical payments – This type of coverage covers the medical bills for a person who is injured on your premises or by your employees. This coverage is only available in some states in India.
– Employment practices liability – This coverage protects your business if it’s accused of discrimination in hiring or firing practices or if it fails to provide a safe work environment.
– Product liability – This coverage protects your business if it’s sued for a faulty product.
What Does Commercial General Liability Insurance Cover?
Commercial general liability insurance policies cover the cost of defending yourself against lawsuits, as well as the cost of settlement if you lose the suit. The policy will pay for your legal defense and settlement costs if you’re sued for any of the following: –
Bodily injury – If one of your employees or a customer is injured on your property or while using your products, you could be liable.
– Property damage – If your employees break something in the course of their work or your products cause damage to your customers’ property, you could be liable.
– Professional liability – If you provide a service that results in harm to someone, such as if a contractor damages a building, you could be liable.
What Does Commercial General Liability Insurance Not Cover?
Commercial general liability insurance policies do not cover all the financial costs of being sued. They do not cover the costs of defending yourself against a lawsuit if you’ve done something illegal. For example, you cannot use this coverage if you’ve broken the law by:
– Committing fraud against your customers – Fraud is a serious crime that involves deceiving someone for financial gain. If you’re caught committing fraud, you will be charged with a crime and will have to pay for both your legal defense and any damages you’ve caused.
– Violating the law – Before you open your business, make sure you’re not violating any laws that require you to have a license to operate. If you’re caught conducting unlawful activities, you will have to defend yourself in court and pay for damages.
– Negligent hiring practices – If you hire someone, and they cause harm to someone while on the job, you may be liable. Commercial general liability insurance policies don’t cover the cost of defending yourself against a lawsuit if you don’t follow your state’s laws on hiring. Some states require you to obtain workers’ compensation insurance, which covers the costs of workers who are injured on the job.
Why Do You Need CG Insurance for Your Business?
A commercial general liability insurance policy can help you avoid financial ruin if you’re ever sued for damages, such as medical expenses or property damage. You may be wondering why you need this type of insurance coverage, especially if you’ve never been sued. The truth is that many businesses are sued each year, often due to no fault of their own. If you’re sued and don’t have insurance coverage to pay for the costs associated with the lawsuit, you could be forced to take drastic measures. You could be forced to close your doors, declare bankruptcy and even sell your assets to cover the costs. A commercial general liability insurance policy will reimburse you for the costs of defending yourself against a lawsuit and the cost of any settlement or judgment the court awards the plaintiff.
How to Find the Right Provider and Get the Best Price?
You should shop around for commercial general liability insurance. Don’t just go with the first company you talk to. Instead, you should compare prices and coverage from at least three or four providers, particularly if your business is high-risk and requires a large amount of coverage. You can find commercial general liability insurance providers through the Internet or through a referral from a business associate.
When comparing providers, be sure to ask the following questions: – How long has the provider been in business? A young company may not be able to pay out valid claims, while an established company is more likely to be in good financial shape. – How much coverage do you need? Commercial general liability insurance policies come in many coverage amounts. Be sure you choose enough coverage to protect your business. – What are the policy’s exclusions and limitations? Make sure you understand what coverage the policy doesn’t offer.
Final Words: Don’t Forget to Buy Commercial General Liability Insurance!
If you own a business, then commercial general liability insurance is crucial to protecting your assets. This type of insurance coverage helps you pay for the costs associated with defending yourself against a lawsuit and the cost of any settlement or judgment awarded to the plaintiff. It’s important that you shop around for providers and get the best price for the coverage you need. Don’t forget to buy commercial general liability insurance for your business.