Commercial General Liability Insurance (CGL)
Business liability coverage for third-party bodily injury, property damage, and advertising injury claims.
What is CGL Insurance?
Commercial general liability (CGL) insurance is a foundational business policy that protects companies from claims alleging bodily injury or property damage caused by their operations, products, or premises, as well as personal and advertising injury claims such as libel, slander, or copyright infringement. CGL policies pay for legal defense costs, settlements, and judgments up to the policy limits. Most commercial leases and contracts require tenants and vendors to carry CGL coverage. Policies are typically written on either an occurrence basis (covering incidents that occur during the policy period) or a claims-made basis (covering claims reported during the policy period).
Example
A customer slips on a wet floor at a retail store and sues for $150,000 in medical expenses and lost wages. The store's CGL policy covers the legal defense costs and the full settlement, protecting the business from an out-of-pocket loss that could threaten its solvency.
Source: National Association of Insurance Commissioners — Commercial Lines