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How much does a Commercial General Liability Insurance Policy cost?

Sep 15, 2023

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Commercial General Liability Insurance Policy

How much does a Commercial General Liability Insurance Policy cost?
Contents

Today, there is strong public awareness about the workplace conditions and daily operations of companies. If a company is found to be in breach in 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 a bodily injury or his property is damaged within the Insured’s Business Premises and the customer sues the business owner for the losses. A business owner can protect himself against claims of bodily injury or property damage with a Commercial General Liability Insurance Policy. A CGL Policy is an affordable way to protect your company against the costs of these common lawsuits. A Commercial General Liability Insurance Policy is also known as a CGL 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 CGL Insurance Policy is a combination of a Public Liability Insurance Policy and a Product Liability Insurance Policy.

How much does a Commercial General Liability Insurance Policy cost?

The cost of a Commercial General Liability Insurance Policy depends on various factors. Usually, The CGL Policy cost for high-risk businesses which are more prone to claims of bodily injury and property damage will be higher than the CGL Policy Cost for low-risk businesses.

Factors that Affect Commercial General Liability Insurance Costs

Various factors that influence Commercial General Liability Insurance Costs that include the following:

  1. Limit of Liability Required: Limit of Liability is one of the most important factors affecting CGL Policy Costs. A CGL Policy with a limit of liability of Rs20 crore will be 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.
  4. Nature of Business and Industry: If the Insured is operating in a high-risk business or a high-risk industry, like Hospitality Industry, the Commercial General Liability Insurance Policy Premium will be higher as compared to the Commercial General Liability Insurance Premium that would be charged for a low-risk business or a business operating in a low-risk industry, say like a Consulting Business.
  5. Prior Claim Experience: A Business with zero claims in the past will be charged a lower premium for their Commercial General Liability Insurance Policy than a business that has reported 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 will cover 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 CGL Policy Cost will be higher for businesses with more workers as compared to the cost for 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 will have 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 CGL Policy which has a lower deductible.

Get a Free Quote for your Commercial General Liability Insurance Policy

You can determine the cost of a Commercial General Liability Insurance Policy by getting a free quote from Qian Insurance Broking LLP. The team at Qian will help you compare Commercial General Liability Insurance Coverages amongst various insurance companies and help you select the CGL Policy which is tailored and best-suited to your needs.

To get a free Commercial General Liability Insurance Quote, chat with a licensed Insurance Broker.

  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

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