What is Commercial General Liability Insurance?
Commercial general liability insurance refers to a particular part of business insurance that covers any damage that you, your company, or your employees may cause in the process of doing business for a customer.
Let’s say that you are running a service oriented business and have a number of employees working for you. Those employees have equipment that they use in their jobs at a customer’s location. Assume for a moment that the equipment malfunctions and causes damage to the customer’s property. Because it was your employee who caused that damage, intentionally or not, you are financially responsible for the repair.
This is where liability insurance steps in. According to your policy, you will first pay the agreed upon deductible, and your insurance carrier will pay the rest of the damages to the customer, as well as any associated lawyer fees and court costs, should the incident have resulted in a lawsuit against you.
Related posts: