General Liability is a broad term that refers to a package of coverages and limits.
The Commercial General Liability (CGL) policy covers against lawsuits alleging bodily injury, personal injury and property damage due to negligence on the part of the insured. The insured is the entity and/or person shown on the policy. The policy is designed to protect the insured against a lawsuit that alleges negligence on behalf of the insured or the insured’s employees. The response to a claim is twofold; the insurance company will step up and defend you as well as pay damages.
Most Commercial General Liability Policies may appear similar to this:
- General Aggregate Limit: $2,000,000
- Per Occurrence Limit: $1,000,000
- Products – Completed Operations Limit: $2,000,000
- Personal and Advertising Limit: $1,000,000
- Each Occurrence $300,000
- Medical Expense $5,000
- General Aggregate Limit – The maximum limit of insurance payable during any given annual policy period for all losses other than those arising from specified exposures.
- Per Occurrence Limit – In liability insurance, the maximum amount the insurer will pay for all claims resulting from a single occurrence
- Products – Completed Operations – An insurance product that covers the liability incurred by a contractor for property damage or injuries that may happen to a third party once contracted operations have ceased or been abandoned. Even though the operations are deemed to be “completed” by the contractor, the loss or injury is deemed to be as a result of those operations. Completed operations insurance contracts are applied to construction.
- Personal and Advertising Limits – Designed to cover publication of material that slanders or libels another person or organization. Also can cover damages and legal defense costs from lawsuits that claim false, malicious or misleading statements in advertisements, promotional flyers, brochures, or Web sites.
- Each Occurrence – The maximum limit of insurance payable during a claim period for all losses other than those arising from specified exposures.
- Medical Expense – Shows the limits for medical expense for third parties.