The Importance of Commercial General Liability Insurance

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Jake Wintczak

email: jakew@primeis.com

Commercial General Liability Insurance

The Importance of Commercial General Liability Insurance

Businesspeople of all types need to protect themselves and their businesses against lawsuits and their related costs. Commercial general liability insurance (CGL) is an indispensable product line for anyone in business. It protects against all of the liability risks to which a company is exposed.

There are many ways a business owner and/or the business itself can be held liable for loss. Bodily injury and property damage are two significant risks, whether it is injury or damage incurred on the site of a business or as the result of a product or service provided by the business. Then there are personal and advertising injuries, medical costs, property damage a business incurs on a rented site, and more. Business owners want to avoid all these situations.

The costs of these damages and losses can be staggeringly high, especially for smaller businesses without the same access to capital as larger corporations. Some figures say a general liability claim can average more than $75,000 per case to defend and settle. Reputational harm, product liability, customer injury or damage, and slips and falls can all be very costly claims too. To mitigate the risk of financial ruin, long-lasting reputation damage, and major legal battles, every business needs commercial general liability insurance.

Why Invest in Commercial General Liability Insurance

If the need to mitigate risk and protect from costly lawsuits is not enough of a reason to invest in CGL, business owners can find motivation by looking at the requirements of their employers, clients, and contracts. In many situations, a business must show proof of liability insurance. Nobody wants to take unnecessary blame for liability and risk. In some cases, licensing bodies will also require proof of commercial general liability insurance because it is so commonly accessed. If you are an insurance producer working with clients like real estate agents, accountants, or dentists, be sure that you explore their insurance needs as set out by their professional licensing requirements.

Even when participating in events like trade shows or renting an office space, a business is often asked to provide proof of insurance. It is challenging to get anywhere in the business world without making the most of good opportunities, so it is smart business sense to get the right insurance in place. While it may not be required by law, policies and contracts often demand CGL. Failing to secure this product can significantly reduce business opportunities.

Beyond that, companies and potential clients want to know that a business is making smart decisions and working in a safe, rational way. Proof of insurance is a reliable indicator that a business cares about its work and will stand behind its actions, with the ability to compensate if something goes wrong.

Accessing Commercial General Liability Insurance

As an excess and surplus insurance carrier, Prime Insurance Company provides CGL for those who have been denied commercial general liability insurance. Many would-be business owners think they cannot start a company in good faith, believing they cannot access insurance for whatever reason. We are proud to offer flexible, innovative solutions. While we cannot guarantee that we can insure everyone, we explore every avenue to provide coverage where possible.

The same holds for business owners who are operating without insurance. We know the risks of business very well and encourage anyone in business to protect themselves, their employees, their property, and clients with commercial general liability insurance. We appreciate that there are many reasons that people avoid buying insurance, such as the cost, the probability of an accident, or difficulty getting coverage, but we are here to find a way to obtain the coverage businesses need.

That being said, it is essential for business owners and employees to understand the limitations of commercial general liability insurance. Not every potential risk is covered in this policy. Insureds may want to extend their coverage with products like professional liability insurance, property insurance, and commercial auto insurance. We are happy to work with insurance producers and their clients to find the right blend of insurance product lines and coverage limits to protect all aspects of the business, its staff, and its assets.

To learn more about commercial general liability insurance and Prime Insurance Company, send us an email at quotes@primeis.com, call us at 800-257-5590 or go to our website at primeis.com. To learn more about us and how we do what we do, you can follow us on Facebook, Twitter, YouTube, LinkedIn, and Instagram, or read our blog.

Rick J. Lindsey
Rick Lindsey

President, CEO and Chairman