Why Do I Need Commercial General Liability (CGL) Insurance?
Feb 25, 2021
What is the purpose of a Commercial General Liability insurance policy?
If you own a business and are looking into protecting it with insurance, you may come across a coverage called Commercial General Liability (or CGL) Insurance and think "Well, why do I need Commercial General Liability Insurance?" That’s a great question. The team at Foxquilt will help you answer this question today and any other questions that you might have about Business Insurance. We'll explain what is the importance of Commercial General Liability Insurance and why your business needs CGL Insurance to fully protect it.
Why is Commercial General Liability (CGL) Insurance Important to Have?
You need Commercial General Liability (CGL) Insurance not only to protect you from claims but for other reasons as well.
As a rule, you should have insurance in place before your business is operational - meaning before you have any stock, make any sales or occupy any space. At some point early on, you may find yourself looking at renting or leasing a commercial space. This can be particularly common for retail businesses. When reviewing the lease documents, you’ll likely find a clause requiring you, the tenant, to have insurance - including Commercial General Liability (CGL) Insurance. Proof of insurance is often requested by clients or prospects, and not being able to provide it may make them question your credibility and reliability as a business.
This can be common when signing contracts with larger clients or partnering with other companies. Proof of insurance is an asset when pitching to clients for new business.
Beyond the reputational concerns, there are a few other things to ask yourself when considering Business Insurance:
- Can I afford the legal costs associated with defending myself and settling a liability lawsuit?
- How many months can I go without business income while still meeting my financial obligations with my suppliers, employees and the government?
- Can my business survive a loss?
Learn more about "What Happens If You Don't Have Commercial General Liability Insurance?"
While considering the above, it helps to speak with a trusted advisor to help navigate all the different types of insurance available and to help understand how coverages like Commercial General Liability Insurance support you during a claim. Without Business Insurance, like CGL Insurance, you would be financially responsible for keeping your business afloat in the situations we mentioned above. Often times, especially for small businesses, not having the right insurance to support your business can result in you having to close down due to the financial costs. Our Foxquilt team understands each business has unique needs and warrants a tailored approach. Our trusted team can help you find the right coverage for your business and help you get peace of mind. Get your quote today!
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