In addition to personal lines insurance (auto, property, recreational), Costen & Associates also offers a wide range of Commercial Insurance, including Commercial General Liability coverage.
Liability Insurance protects you from law suits that result from property damage or bodily injury due to a negligent act. Negligence occurs when a duty of care is owed to another party, a breach of such duty occurs, and a causal relationship between the breach and damage exists. Examples of negligence can range widely from the failure to clear snow from sidewalks or walkways (slip and fall) to the improper maintenance of equipment leading to a crane collapsing (resulting in massive property and bodily injury damage).
A Commercial General Liability policy includes the following:
- Premises Liability – the liability resulting from occupying a specific space
- Operations Liability – the liability resulting from the performance of your work
- Products Liability – the liability resulting from the purchaser’s use of your product
- Completed Operations – the liability resulting from work you have completed incorrectly
Most Commercial General Liability policies include additional endorsements, the most common being:
- Tenant’s Legal Liability – covers damage to the landlord’s property due to your negligent act while renting the location
- Personal Injury – often confused with bodily injury, this is coverage for damage to someone’s reputation or to someone’s emotional well-being (for example, false arrest, wrongful prosecution, wrongful eviction, wrongful entry, libel, slander, or privacy violation resulting from a publication)
- Non-owned Auto – provides coverage in the event an employee is involved in an accident while running an errand for you in their own vehicle
The limits for a Commercial General Liability policy can range from $1,000,000 and higher, with $2,000,000 being common. When deciding on what limit to purchase, it is important to consider the worst case scenario for your specific situation, including how much damage you think could possibly occur and the cost difference for the higher limits of coverage. Quite often, the cost is minimal to increase the coverage to a higher limit of $5,000,000 or $10,000,000.
In the event of a claim the Insurance Company will defend you and , if you are found negligent, will pay any settlement amount up to your limit of insurance. The duty of the Insurance Company to defend does not apply to any intentional actions.
As with all insurance policies, there are certain warranties and exclusions that apply in a Commercial General Liability policy. These policies do not have mandatory wordings and each Insurance Company’s wordings are tailored to attract the kind of business they are looking for.
If you are looking for more information on Commercial General Liability insurance, or are in need of a quote, we would be happy to assist you in finding the best wording at the best price for your specific business.
Thank you!
The Costen & Associates Team
