As a business owner, you face almost unlimited liability risks. To protect yourself against legal liabilities, you need a Commercial General Liability (CGL) policy. CGL coverage can insure you against:

• An employee injuring someone while trying to protect your property • Battery or Assault

• An employee dies while operating your mobile equipment • Malicious prosecution

• A client or supplier accidentally injuring himself or herself on your property • Disparagement (or defamation) of goods

Types of Coverage

A CGL policy is actually a combination of several coverages rolled into one. The first set of coverages deals with bodily injury and property damage. With this coverage, you’re insured against certain on-site claims, claims against your completed product, and liability suits brought as a result of a contract or the actions of independent contractors. This coverage also provides for a limited amount of fire damage legal liability.

Another CGL coverage is personal injury or advertising injury liability. This protects you against liable, slander, false arrest, invasion of privacy, copyright infringement, and similar injuries.

The final set of coverage is medical payments. It covers medical expenses for an injured third party, regardless of fault.

With a CGL policy, you also can get host liquor liability, extended bodily injury liability, non-owned watercraft liability, medical malpractice coverage, contractual liability, broad form property damage, and automatic coverage for acquired organizations.

For more complete coverage, you can put together a CGL policy with property, crime, inland marine, and boiler and machinery coverages. Included in the CGL policy will be common policy declarations, commercial general liability declarations and common policy conditions.

Claim Requirements

To make sure a claim is covered under a CGL policy, you must meet four requirements. First, you must be legally obligated to cover the damages of the third party. Second, you must be legally obligated for any property damage or bodily injury that occurs. Third, you must comply with the terms of your insurance policy (for example, payment of premium). Fourth, an event must have taken place to trigger the claim.

The bottom line is, make sure your business is protected against liability risks - around the clock, every day.

F. David McNamara, Jr. is Chairman of the Board & CEO of Gorges & Company, Inc., based in Timonium, Maryland. For more information about CGL policies and protecting your business against unnecessary risks, call Mr. McNamara at 410-561-8280.