commercial general liability
Definition
Commercial general liability (CGL) is a type of business insurance policy that protects your company if someone gets hurt on your property or if your product or service causes harm to another person. It covers the legal costs and any payouts you owe if a customer, vendor, or stranger sues your business for bodily injury or property damage. Think of it as the foundational safety net that most businesses carry to avoid paying out-of-pocket for accidents and lawsuits.
Example
If a customer slips and falls in your store and sues you for their medical bills, your CGL policy would typically pay for your lawyer and cover the settlement if you lose. The same policy would kick in if you accidentally damage a client's property while working at their location.
Watch Out
A CGL policy does not cover everything, so make sure you understand what it excludes, because things like professional mistakes, employee injuries, and vehicle accidents usually require separate policies.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.