Organisations purchasing a Commercial General Liability Insurance Policy (also known as CGL Policy) should understand how the various limits apply and how they impact the Commercial General Liability Insurance Policy Cost.
CGL Policy Wordings specify different limits. This article will explain the meaning of these various limits and how they impact the claims.
What is the Commercial General Liability Insurance Policy?
A Commercial General Liability Insurance Policy also known as a CGL Policy is a type of liability Insurance Policy which pays for any type of Bodily Injury or Property Damage suffered by third parties in the company’s premises or because of using the Insured Party’s Products
What is General Aggregate Limit in a CGL Policy?
The General Aggregate Limit is the most important limit of the Commercial General Liability Insurance Policy.
General Aggregate Limit is the maximum amount that the Insurance Company will pay during the Policy Term in event of a Commercial General Liability Claim. The Insurance Company has no further liability after the limit has been exhausted.
There is no restriction in number of claims that you can make under the General Aggregate Limit of the CGL Policy. The CGL Policy will pay claims until the General Aggregate Limit is exhausted.
Also, every time there is a claim under your Commercial General Liability Insurance Policy, the General Aggregate Limit of the CGL Policy gets eroded, meaning the General Aggregate Limit gets reduced by the amount of Claim.
The General Aggregate Limit of the Commercial General Liability Insurance Policy applies to the following:
Coverage A: Bodily Injury and Property Damage (except Products-Completed Operations)*
Coverage B: Personal and Advertising Injury
Coverage C: Medical Payments
* A Separate Limit applies to damage arising out of Bodily Injury or Property Damage caused by Products-Completed Operations
What is the Products-Completed Operations Limit in a Commercial General Liability Insurance Policy?
A Commercial General Liability Insurance Policy specifies a separate limit for damages due to bodily injury and property damage arising out of Products-Completed Operations hazard.
Products-Completed Operations Limit in a Commercial General Liability Insurance Policy (CGL Policy) covers bodily injury and property damage to third parties caused as a result of your COMPLETED FAULTY WORK.
The requirements for Products-completed operations hazard to trigger are as follows:
i) Products-Completed Operations Hazard triggers when the work has been completed and is not in process
ii) Products-Completed Operations Hazard triggers when the work IS completed away from the Insured’s named premises
The Products-Completed Operations aggregate limit is separate from the general aggregate limit of the CGL Policy. Damages paid under the general aggregate limit do not impact the products-completed operations limit and vice versa.
What is Personal and Advertising Injury Limit in a Commercial General Liability Insurance Policy?
The Coverage B Section of the CGL Policy provides cover for Personal and Advertising Injury Liability. Personal and Advertising Injury Limit in a Commercial General Liability Insurance Policy provides cover for both Personal Injury Liability and Advertising Injury Liability.
Personal Injury Liability Coverage in a CGL Policy provides cover for things like Libel, Slander, Malicious Prosecution, Breach/Invasion of Privacy etc. while Advertising Liability Coverage in a CGL Policy provides coverage for things like Copyright and Trademark Infringement, Misappropriation of Advertising Ideas etc.
The CGL Policy will pay upto the Personal & Advertising Injury Aggregate Limit for all claims arising because of all sorts of personal and advertising injury offenses as mentioned above.
What is Medical Expenses Limit in a Commercial General Liability Insurance Policy?
The Coverage C Section of the Commercial General Liability Insurance Policy includes cover for Medical Payments. The CGL Insurance Policy Coverage C pays for the Medical Bills because of Third Party Bodily Injury or Property Damage irrespective of the Insured Party’s negligence. It is a No-Fault Liability Cover and pays for small injuries to the customer’s on the Insured Party’s Premises. The Medical Expense Limit in a Commercial General Liability Insurance Policy applies to each person separately. Payments made for Medical Expenses under Coverage C of the CGL Policy will reduce the General Aggregate Limit.
What is the Damage to Premises Rented to the Insured Limit in a Commercial General Liability Insurance Policy?
Damage to Premises Rented to the Insured Limit in a CGL Policy is the maximum payable amount for property damage to any premises rented to the Insured under Coverage A: Bodily Injury and Property Damage Section of the Commercial General Liability Insurance Policy.
Commercial General Liability Insurance Policy: Free Quote
A CGL Policy Covers Bodily Injury and Property Damage caused to Third Parties. A CGL Insurance Policy is indispensable for any business. It is essential to understand the various limits of the CGL Insurance Policy in detail to avoid unwanted surprises later on.
There are many endorsements which might restrict your CGL Policy Coverage and leave your business vulnerable. Thus, it is extremely important to go through the Commercial General Liability Insurance Policy Wording in detail with the assistance of an experienced insurance broker.
If you have any queries regarding your CGL Policy or want to purchase a CGL Insurance Policy for your business, give us a call. Our experts would be glad to assist you.
- Commercial General Liability Insurance
- Secure your Business from Claims of Bodily Injuries and Property Damage
- What is a Commercial General Liability Insurance Policy?
- What are the coverages under a Commercial General Liability Insurance Policy?
- What does Bodily Injury and Property Damage Section of a Commercial General Liability Insurance Policy Cover?
- What are the Add-On Covers under a Commercial General Liability Insurance Policy?
- What is Personal and Advertising Injury Liability under a Commercial General Liability Insurance Policy?
- What are the Coverages under the Personal and Advertising Injury Liability section of a Commercial General Liability Policy?
- What does the Medical Payments Section of a Commercial General Liability Insurance Cover?
- What are the exclusions under a Commercial General Liability Insurance Policy?
- Will my Commercial General Liability Insurance Policy Cost be higher if I purchase the Policy through an Insurance Broker?
- Get a FREE 1 Hour Consultation for your Commercial General Liability Insurance Policy