Commercial general liability insurance is one of the most important (and popular) liability insurance policies, recommended to almost every type of business that offers tangible or intangible products. To learn about the basics of the CGL plan, please go here. There are many use cases where commercial general liability insurance can come into effect and provide you coverage against legal claims.Here are five real-life incidents where the said insurance can come to your aid:
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1. Your customer fell on your property and got injured
This is a very common example where CGL insurance kicks in. Imagine the floor at your premise is wet and slippery. There’s even a sign of “wet floor”, cautioning the visitors. One of your customers didn’t see the sign and walked in anyway. They fell and hurt their spinal cord, sustaining significant injury.In this case, the commercial general liability will pay for that person’s immediate medical expenses. Further, if that person decides to sue your company, the insurance will pay you for defense cost as well.
2. Your product caused an injury to the customer
You did all you could to ensure the final product that reaches the customer is exceptional. The product went through rigorous quality checks. But something was wrong. When the product reached the customer and they started using it, it somehow resulted in them sustaining some form of physical injury. (For instance, the packaging of the product had sharp edges that caused a finger cut.) In this, the customer may seek compensation for their medical expense. They may even choose to sue your company for such a product. Comprehensive commercial general liability insurance covers both public and product liabilities. In such instances mentioned above, it would provide you the needed coverage.
3. Your employee spilled something on the customer’s property
A client came to your office. You were trying to be a nice host, so you ordered mango juice for them. One of your employees, while serving them the juice, spilled it on their expensive handbag. This qualifies as damage to property. The commercial general liability insurance can pay for the replacement of the damaged property. Further, if the client decides to sue your business over this incident, the insurance pays for your lawyers’ fees, court expenses and other legal costs as well.
4. You copied someone else’s idea in your ad campaign
This could be completely unintentional! You’re preparing for your end-of-the-year sales campaign. You create a referral program, as well as social media copies to be used in this sales campaign. While you did manage to drive good sales, one of your competitors meanwhile took objection to this, claiming you copied their ideas. Such claims of stolen ideas come under the banner of advertising injury. Your CGL plan will provide protection against these stolen ideas.
5. You inadvertently did or said something discriminatory
This is more common today than you may realize, thanks to social media. One of your marketing team members made a tweet that sounded discriminatory against a particular group. People took offense to this and decided to take your company to court for “personal injury”. In such a case, your CGL policyThe legal document issued to the policyholder that outlines the conditions and terms of the insurance; also called the ‘policy can protect you against such legal claims arising out of inadvertent action that’s misconstrued by others.
These are five real-life incidents where your commercial general liability insurance can come to your aid. There are many ways how the CGL plan will not just protect your business against legal liabilities but even pave the way to consistent growth and sustainability. So, if you haven’t already, buy a fitting CGL plan today. Connect with a licensed insurance broker and get their help in finding the right plan.
