If insurance was a birthday party, the Commercial General Liability (CGL) policy would be the cake. That is, it is the most basic type of insurance that many other policies build on top of. Businesses of any size should consider a CGL policy.
Many entrepreneurs have small business liability insurance as it is typically required to get a loan or an office space (see here for common triggers for buying insurance). Given how complex the typical policy can seem, it is a daunting task to try and understand exactly what is covered. Some policies can be 65 pages long, and full of jargon which is difficult to understand, deterring you from truly understanding the coverage applied to your small commercial business.
The most basic coverages provided by a Commercial General Liability (CGL) policy include:
- Injuries to customers, suppliers or visitors that happen at your office
- Injuries that happen off-site by your employees (e.g., while visiting a customer)
- Damage to someone else’s property caused by an employee in the course of doing business
- An injury caused by libel or slander (i.e., reputational “injury”)
Keep in mind that there are several types of insurance that a small business should have. Regardless of the type of business you own, several policies may be required in addition to commercial general liability insurance. As an example, if business operations are stalled due to an unexpected hold on a project, commercial general liability insurance does not cover the cost of loss income. In such a case, business interruption insurance is necessary.
If you are looking to get a small business commercial insurance policy, be sure to check whether the following are included, as they are sometimes excluded:
The cost of a Commercial General Liability (CGL) policy depends on a few key factors, such as the industry, level of experience in the industry, revenue, number of employees and location. The best way to find the optimal policy at a competitive rate is to shop around.
Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.