Commercial general liability is most common for businesses that do not qualify for business coverage. Having liability insurance can greatly decrease the risk of a business being sued, and certain CGL policies cover legal expenses. CGL includes the following major liability coverages:
Coverage A: Bodily Injury and Property Damage Liability
BI provides protection for injury, sickness, disease or death suffered by third parties (excludes employees).
PD includes damage or loss of property of others due to the insured's business operations. Coverage B: Personal Injury and Advertising Injury
PI protection covers non-physical injuries, such as mental anguish or defamation.
AI coverage protects the insured in the case of inadvertently injuring a person while advertising a product or service. Coverage C: Medical Payments
Medical payments are expenses for injuries to third parties; no regard to fault or negligence of the insured. Automatically included in CGL are Premises and Operations coverage: any loss es resulting from either the insured's operations or premises are covered. An optional addition to a CGL that in most cases is necessary for manufacturers and independent contractors is the Products and Completed Operations coverage: any damage that occurs after an insured completes a job; i.e. a contractor builds a deck and after completion the deck collapses.