What Happens If You Don't Have Commercial General Liability Insurance?


Aug 28, 2020

When it comes to Business Insurance, you most commonly hear about Commercial General Liability Insurance or CGL Insurance. CGL Insurance is often the basis of a Business Insurance policy; it provides coverage for general liability and business risks - specifically property damage and bodily injury. You've also likely heard of these common scenarios of liability like a customer slipping on a wet floor or one of your employees damaging a client's property. In situations like these, CGL Insurance is what helps cover your business and provides it financial protection. Here are a few more common examples of when can Commercial General Liability Insurance (CGL) help a business:

What Damages Are Covered By a CGL Policy?

Non-employee bodily injuries on your commercial property

If you have an office building that’s open to the public, you can’t completely avoid the risk of an accident that injures someone on your property. Like we mentioned before, this could be as simple as a visitor slipping on a wet floor or ice in front of your entrance.

Damage you caused to someone else’s property while carrying out your work

For example, let's say you're a contractor. While you and your crew are carrying out a construction project, you accidentally damage the foundation of a person's home.

Advertising injuries

This includes slander, libel, copyright infringement, misappropriation and so on. Say a different company sues your business and claims copyright infringement, arguing that your logo and slogan are too similar to theirs.

What Happens If I Don't Have Commercial General Liability Insurance?

Commercial General Liability Insurance is often the foundation of your business protection plan. This policy offers a range of liability protections that most businesses need to thrive. A standard Commercial General Liability policy covers potential lawsuits associated with your business. Without it, your business is left at risk and you might need to pay the costs out-of-pocket. Sometimes these fees can be enough to close down a small business.

How Does Commercial General Liability Insurance Work?

If your business is met with a lawsuit for damage or injury, having a Commercial General Liability Insurance Policy can help cover legal expenses, repayment for damages and business interruption costs - to name a few.

Check out: Why Do I need Commercial General Liability Insurance?

As previously mentioned, Commercial General Liability is often the basis of your Business Insurance. Sometimes even if we take the right precautions and steps, life still hands us accidents and mistakes; it's easier knowing you already have peace of mind. Our Foxquilt team can help find you CGL insurance and other customized coverages tailored for your business and its needs. You can even access exclusive savings on your insurance just by joining others in the Foxquilt community. Get started today.

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