restaurant kitchen with chefs and waitstaff working

What is Commercial General Liability?

Commercial general liability, or CGL, is considered comprehensive business insurance though it does not cover all risks a business may face.

CGL is exclusively general liability insurance for your business and covers non-professional negligent acts such as bodily injury, personal injury, property damage, and advertising injury caused by your business’ operations, products or employees.  It also includes injuries that occur on the business’ property. It does not include property insurance, but that can be added with a separate policy

What Could CGL Include?

Bodily Injury and Property Damage Liability: Liability arising out of negligent acts or arising out of premises or business operations. (Workers comp and employment practices liability are not included, but can be purchased as separate policies).

Personal and Advertising Injury: Arising out of offenses such as libel, slander, false arrest, copyright infringement, malicious prosecution, use of another’s advertising idea, wrongful eviction, entry, or invasion of privacy.

Medical Payments: Limited coverage for medical payments includes payments for injuries sustained by a non-employee caused by an accident that takes place on the insured’s premises or when exposed to the insured’s business operations. Medical payments coverage can be triggered without legal action.

caution wet floor sign in office setting

What Is a Business Owner’s Policy?

A business owner’s policy, or BOP, combines business property and business liability insurance into one convenient policy. BOP Insurance helps cover your business from claims resulting from things like fire, theft, or another covered disaster, as well as from claims involving bodily injury, property damage, and personal and advertising injury that could arise from your business’ operations.

You need a BOP if:

  • Your business has a physical location, either your home or a rented or owned office
  • There exists a possibility of being sued — for example, by a customer who was injured at your workplace
  • You have assets, digital or physical, that can be stolen or damaged. This can include customer data, equipment, furniture, inventory, or cash.

What Do BOPs Include?

Property insurance for buildings and contents owned by the company: A BOP covers your property as well as any business-owned items or items owned by a third party but kept temporarily in the care, custody or control of the business or business owner. (There are two different forms, standard and special, which provides more comprehensive coverage.)

Business interruption insurance: Covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.

Liability protection: This covers your company’s legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations, and errors in services provided.

man driving a forklift in a warehouse

What Doesn’t a BOP Include?

BOPs typically do not include the following:

  • Professional liability
  • Auto insurance
  • Worker’s compensation
  • Health and disability insurance
  • Professional services
  • Vehicles
  • Employees
  • Crime insurance
  • Flood insurance
  • Spoilage of merchandise
  • Computer equipment
  • Mechanical breakdown
  • Forgery and fidelity bond
  • Cyber liability/data compromise

The above-mentioned items would require separate policies. Some may be made available by endorsement.

CGL and BOP Policies Protect Your Business

Protect your business from catastrophes, unforeseen accidents, negligent acts, and more. When it comes to potentially expensive mistakes, you’re better safe than sorry! Ask us about our CGL and BOP policies today.