Commercial General Liability 

What is Commercial General Liability?

Despite your best intentions, accidents happen and if the accident is a result of something your business has done, then a client, contractor, or member of the public can claim against your business for compensation. Your third party liability can be triggered by something as simple as spilling a drink over a client’s computer, or a client slipping on a wet surface in your office incurring injury or damage.

Who requires Commercial General Liability Insurance?

• Businesses and companies
• Many companies and organisations will also insist on their suppliers having Commercial General Liability insurance cover in place

What are the potential exposures for Commercial General Liability?

• Bodily injury, property damage, personal injury (libel or slander), advertising injury that your company or one of your employees causes to a client, contractor or member of the public as a result of your business operations or premises
• Anyone working for you could trigger a Commercial General Liability claim against your business if his/her actions at work injure a client or member of the public

What coverages are provided with a Commercial General Liability Insurance policy?

• Provides protection for your company against lawsuits from third parties for bodily injury, property damage caused by your business products or operations
• Compensation for an injury when your business is at fault
• Coverage includes incidents that may occur on your premises or at other locations covered by your policy where you normally conduct business
• In the event of a covered claim, the insurance company pays the cost of the claim, damages, legal fees and settlements up to the limits of the policy and within the definitions of the policy

Professional Liability excluded from Commercial General Liability Insurance policies

• Commercial General Liability (CGL) policies do not cover Professional Liability / E&O.  A CGL policy focuses on bodily injury and/or property damage and specifically excludes Professional Liability / E&O. For this reason, E&O is important for any business or professional that could make an error in professional service that leads to a financial loss. It insures the business owners’ mistakes as well as those made by employees and subcontractors.
• When a businesses or professionals are hired, they are expected to have the knowledge, experience and training to perform to the standard of their profession. If they fail to perform, they can be held responsible for harm caused. The E&O policy protects the insured against financial losses from lawsuits filed by their clients against them. It covers the legal defense as well as the settlement.

Commercial Package Policy Option - Property Coverages:

Property of Every Description Coverage (Included in Insurance Office Package):

• Broad Form Coverage
• Physical Assets (Office Equipment and Furniture)
• Business Interruption
• Improvements and Betterments
• Worldwide coverage for property off premises

Coverage protects your business property against loss or damages caused by policy specified perils such as theft, fire, windstorms, and explosions.  This coverage may be compulsory if you lease or rent your premises (please check in your lease agreement or with your landlord).

If you run a home-based business, your homeowner’s policy will not cover you for damages to your business assets.  Many homeowners’ policies also require that you have a commercial insurance policy if you are running a business from your home.

To help protect your business in Alberta, British Columbia, Nova Scotia and New Brunswick, Pirbright Professions Inc. can provide small businesses with Commercial General Liability insurance as a standalone policy.  Alternatively, it can be purchased together with an Office Property Package policy or other lines of coverage such as Professional Liability or Errors & Omissions coverage, Directors & Officers Liability and Cyber Liability Insurance coverage.  All companies have potential exposures in all of these areas.

Should you have any queries or require any further information, please contact us.