What Does Commercial General Liability Insurance Cover?

If you own a business, you know that accidents happen sometimes despite your best efforts. That’s where commercial general liability (CGL) insurance comes in. At Amistad Insurance Group, we help Florida businesses of all sizes stay protected from unexpected claims and lawsuits. In this blog, we’ll break down what general liability insurance coverage really means, what it protects, and why it’s essential for your business.

Understanding Commercial General Liability Insurance

Commercial general liability insurance (often shortened to “general liability insurance coverage”) is a fundamental type of business insurance. It protects your company from financial losses due to claims of bodily injury, property damage, and personal or advertising injury that occur as a result of your business operations, products, or premises.

Key Coverages Provided by General Liability Insurance

General liability insurance coverage typically includes:

• Bodily Injury: If a client or visitor is injured on your business premises, this coverage can pay for medical expenses and legal fees if you’re sued.
• Property Damage: Covers the cost of repairing or replacing someone else’s property if your business operations accidentally cause damage.
• Personal and Advertising Injury: Protects against claims of libel, slander, false advertising, or infringement of copyright or trademark.
• Medical Payments: Pays for minor medical expenses if someone is injured at your business, regardless of fault.
• Legal Defense Costs: Covers attorney fees, court costs, and settlements or judgments if your business is sued for a covered claim.

What Is Not Covered by General Liability Insurance?

While general liability insurance coverage is broad, it does not cover everything. Common exclusions include:

• Intentional acts or criminal activity
• Professional errors or negligence (requires professional liability insurance)
• Employee injuries (covered by workers’ compensation)
• Automobile accidents (requires commercial auto insurance)
• Pollution or environmental damage (requires specialized coverage)

Why Is General Liability Insurance Important for Businesses?

Lawsuits can be financially devastating for small and large businesses alike. General liability insurance coverage helps you manage these risks and keeps your business running smoothly even when the unexpected happens.

How Much Does General Liability Insurance Cost?

The cost of general liability insurance coverage varies based on your business type, size, location, and the level of risk involved. On average, small businesses in the U.S. pay between $400 and $1,500 annually for a standard policy. High-risk industries, such as construction or hospitality, may pay more. At Amistad Insurance Group, we work with you to find the most affordable and comprehensive coverage for your unique needs.

How to Get Commercial General Liability Insurance

Getting general liability insurance coverage is straightforward with Amistad Insurance Group. Our bilingual agents—fluent in English, Spanish, and Spanglish are available to guide you through the process, whether you need auto, home, or business insurance. We’ll help you understand your options and ensure your business is protected against common risks.

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Resources

For more information on business insurance requirements and regulations, visit the official Florida Department of Financial Services website:
https://www.myfloridacfo.com/

For an overview of commercial general liability insurance from the Insurance Information Institute:
https://www.iii.org/article/commercial-general-liability-insurance

Frequently Asked Questions (FAQs)

Below are four common questions about general liability insurance coverage that are not answered directly in the main content above:

1. Can I add another business or contractor as an “additional insured” on my general liability policy?
   Yes, many general liability insurance policies allow you to add other businesses or contractors as “additional insureds.” This provides them with coverage under your policy for claims arising out of your operations or work performed on their behalf. 

2. Does general liability insurance cover product recalls?
   Generally, general liability insurance does not cover the costs associated with product recalls. Specialized product recall insurance is available for this purpose.

4. What’s the difference between occurrence-based and claims-made general liability policies?
   An occurrence-based policy covers claims for incidents that happen during the policy period, even if the claim is filed after the policy expires. A claims-made policy covers claims made only while the policy is in force, regardless of when the incident occurred.
5. Is general liability insurance required by law in Florida?
   While general liability insurance is not required by Florida law for most businesses, many clients, landlords, and government contracts require it. It’s a best practice for risk management and business credibility.

Get Expert Guidance for Your Business Protection Needs

Commercial general liability insurance is a cornerstone of business risk management. It protects your company from financial loss due to claims of bodily injury, property damage, and advertising injury helping you focus on growth instead of lawsuits. At Amistad Insurance Group, we’re committed to helping Florida businesses thrive by providing expert guidance and affordable general liability insurance coverage.

Ready to protect your business? Contact us today for a free quote and personalized service tailored to your needs.