What Is Comprehensive General Liability (CGL) Insurance?

Does Every Business Need It? What Does It Cover?

When you own and operate your own business, one of your greatest concerns is protecting your investment. While setting your business up as a corporation or limited liability company can safeguard your personal assets from business creditors, an accident involving your product or other lawsuit may have the potential to bankrupt your enterprise. One of the best ways to manage the potential risk of such a lawsuit is with comprehensive general liability insurance.

What Is Comprehensive General Liability Insurance?

Comprehensive general liability, or CGL, insurance is a policy that protects you when an unrelated third party suffers injury or loss because of your business, your products or your operations. Typically, a CGL policy will pay up to a specific amount when a covered loss is reported. The policy may also pay any legal fees incurred in defending your company in a lawsuit related to the injury or loss.

Does Every Business Need a Comprehensive General Liability Policy?

If you run a business that has the potential to be involved in a high-dollar injury or loss claim, you should consider purchasing a CGL policy. If your business is operated as a sole proprietorship or a partnership, you may have even greater need for such a policy, as your personal assets can be attached by anyone obtaining a judgment against your company.

What Types of Claims Are Typically Covered by Comprehensive General Liability Policies?

The scope of a CGL policy, by definition, is expansive. In virtually every instance, it will provide remuneration for:

• The types of damages typically associated with a personal injury—lost wages, unreimbursed medical expenses, pain and suffering, loss of enjoyment of life, and loss of companionship/consortium
• Any property damage associated with a loss
• Any legal costs incurred to defend a lawsuit, including legal fees and court costs

Contact MCIS Law

At MCIS Law, PLLC, in Stafford, we provide comprehensive counsel to businesses in southeast Texas. For a confidential consultation with an experienced and knowledgeable lawyer, email us or call our office at (346) 297-0121. We accept all major credit cards.