Your business should start with a general liability policy. Your premises and other areas your business is responsible for are protected by this. Perhaps your business also needs an auto policy and even several other liability insurance policies.
Tip. Make sure you use an experienced commercial insurance agent when reviewing your different liability exposures. Without the proper protection, you're risking your business and possibly your personal assets.
The Commercial General Liability Policy (CGL) is written on two distinctly different forms. Depending on your type of business, you might only have one option so it's important to understand the difference between the two.
Two CGLs are available:
- An Occurrence policy. (the most common) A claim is paid if it happens during the policy period.
- A Claims Made policy. A claim is paid if made during the policy year, and the claim had to occur on or after the retroactive date.
This can create problems when you switch between the two types of forms. In addition to these different CGL forms, there are coverage forms A, B, and C.
Other tools can also fit a CGL to various business situations. Among these are pollution and employment-related matters.
To learn more about the Commercial General Liability Policy, visit our Learning Center or contact one of our licensed advisors. We're here to help!