How much does a Commercial General Liability Insurance Policy cost?

Today, there is strong public awareness about the workplace conditions and daily operations of companies. If a company is found to be in breach or contravention of the existing laws of the respective countries, they might get sued by customers or other people. As a result, there is a lot of pressure on organisations to ensure fair business practices while conducting their business operations. There have been cases where a customer suffers Bodily Injury or Property Damage within the Insured’s Business Premises and the customer sues the business owner for the losses. A business owner can protect himself from lawsuits alleging Bodily Injury or Property Damage with a Commercial General Liability Insurance Policy.

What is a Commercial General Liability Insurance Policy?

A Commercial General Liability Insurance Policy protects your business against claims of Property Damage or Bodily Injury. This coverage is not fault-based, so it can cover your expenses regardless of the underlying cause of the damage or injury. A Commercial General Liability Insurance Policy is a combination of a Public Liability Insurance Policy and a Product Liability Insurance Policy.

What factors impact the Cost of a Commercial General Liability Insurance Policy in India?

Factors influencing the Commercial General Liability Insurance Costs include the following:

1. Limit of Liability Required: Limit of Liability in a CGL Policy is the most important factor which impacts CGL Policy Premiums. A Policy with a Limit of Liability of Rs20 crore is more expensive than a CGL Policy with a Limit of Liability of Rs10 crore, all other factors remaining the same.
2. Revenue of the Business: Company Revenue is also an important determining factor for CGL Insurance Policy Premiums. Companies with a higher revenue will typically have to pay a higher premium for their CGL Insurance Policy.
3. Territory and Jurisdiction Required: Businesses in India have an option of choosing Worldwide Territorial and Jurisdiction coverage for their Commercial General Liability Insurance Policy or restricting their Territorial and Jurisdiction coverage to India only. Policies with Worldwide Territory and Jurisdiction Coverage have higher premiums than Policies with Territory and Jurisdiction Coverage restricted to India only.
4. Nature of Business and Industry: If the Insured is operating in a high-risk industry, like Hospitality Industry, the chances of Claims are higher and hence, the Premium for Commercial General Liability Insurance Policy will also be higher as compared to the Premium for a business operating in a low-risk industry, say like a Consulting Business.
5. Prior Claim Experience: A company with a favourable claims experience has a lower premium for their Commercial General Liability Insurance Policy than a company that has reported Insurance Claims in the past.
6. Number of Employees: An employer can be held liable for the actions of his employees. For eg: If an employee damages the property of another person, a CGL Insurance Policy covers the claim arising on a business because of such actions. As a result, the greater the number of workers employed by the business, the greater is the risk. Thus, the Premium of a Commercial General Liability Insurance Policy is higher for businesses with more workers as compared to businesses with a lesser number of workers, all other factors remaining constant.
7. Deductible Amount: A Commercial General Liability Insurance Policy with a higher deductible has a lower premium. However, a higher deductible means that the Insured will have to bear a higher amount from his own pocket in case of a Claim as compared to a Policy with a lower deductible.

What is the Cost of a Commercial General Liability Insurance Policy in India?

Usually, a Commercial General Liability Insurance Policy with a Limit of Liability of Rs15 Crores costs Rs1.5 lakhs to Rs2 lakhs. However, as mentioned above, the premiums vary on factors like Limits of Liability, Nature of Industry, Prior Claims Experience etc.

Get a Free Quote for your Commercial General Liability Insurance Policy with Qian!

You can determine the cost of a Commercial General Liability Insurance Policy by getting a free quote from Qian Insurance Broking. The team at Qian helps you compare Commercial General Liability Insurance Coverages amongst various Insurance Companies and also assists you in selecting the Policy which is tailored and best suited to your needs. If you wish to learn more about Commercial General Liability Insurance Policy, you can email us at insurance@qian.co.in or call us on 022-35134695. We would be glad to assist you.

1. Commercial General Liability Insurance
2. Secure your Business from Claims of Bodily Injuries and Property Damage
3. What is a Commercial General Liability Insurance Policy?
4. What are the coverages under a Commercial General Liability Insurance Policy?
5. What does Bodily Injury and Property Damage Section of a Commercial General Liability Insurance Policy Cover?
6. What are the Add-On Covers under a Commercial General Liability Insurance Policy?
7. What is Personal and Advertising Injury Liability under a Commercial General Liability Insurance Policy?
8. What are the Coverages under the Personal and Advertising Injury Liability section of a Commercial General Liability Policy?
9. What does the Medical Payments Section of a Commercial General Liability Insurance Cover?
10. What are the exclusions under a Commercial General Liability Insurance Policy?
11. Will my Commercial General Liability Insurance Policy Cost be higher if I purchase the Policy through an Insurance Broker?
12. Get a FREE 1 Hour Consultation for your Commercial General Liability Insurance Policy