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Apr 2, 2024 · A Complete Guide to Commercial General Liability (CGL) Limits. Ben Pariser. April 2, 2024. Securing Commercial General Liability (CGL) insurance is a fundamental risk management strategy available to business owners. This type of insurance is designed to protect businesses from financial losses due to property damage, bodily injury, and various ...
- Six Interrelated Limits. The CGL policy lists on the declarations six different limits. While the policy lists separately each of the six limits, it is important to recognize that the limits are all interrelated.
- Aggregate Limits. Two of the most important limits of the CGL policy are the aggregate limits. An aggregate limit is the most the insurer will pay during the policy period.
- The General Aggregate Limit. The general aggregate limit is the most the insurer will pay for damages under Coverage A because of bodily injury or property damage and damages under Coverage B—Personal and Advertising Injury because of an offense and expenses under Coverage C—Medical Payment.
- Products-Completed Operations Aggregate Limit. This aggregate limit is the most the insurer will pay during the policy period for damages because of bodily injury or property damage and arising out of the products-completed operations hazard.
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Mar 18, 2024 · A majority (91%) of Insureon customers choose a general liability policy with a $1 million per-occurrence limit and a $2 million aggregate limit. Our customers pay an average of $42 per month, or about $500 per year. Customers who need higher limits can expect to pay a higher premium. While it might be tempting to reduce your coverage limits to ...
- Per Occurrence
- General Aggregate
- Product-Completed Operations
- Personal & Advertising Injury
- Damage to Premises Rented to You
- Medical Expense
- Bottom Line
The occurrence limit, sometimes written as “per occurrence” in a policy, is the maximum amount that an insurance carrier will pay for any one claim. This is spelled out on the declarations page of your insurance policy. Typically, the per-occurrence limit is half of the general aggregate limit. This means that if the general aggregate limit is $2 m...
The general aggregate limit is the maximum amount that an insurance policy will pay for claims during a covered period of time. The coverage of a commercial general liability policy (CGL)is broken down into different sections. The general aggregate limit applies to: 1. Coverage A:Bodily injury or property damage 2. Coverage B:Personal and advertisi...
Included in general liability limits are the product-completed operations limit. This limit sets the maximum amount that will be paid based on liabilities from work completed or made products. For this coverage limit to be triggered, the loss must occur away from the business operations. Helpfully, this limit does not affect the general aggregate l...
Personal and advertising injury refers to things like libel or slander that someone accuses you of. This coverage has its own occurrence limit unaffected by the general per-occurrence limit. The personal and advertising injury limit applies to each affected claimant, not the entire occurrence. So, if more than one person was deemed injured from an ...
Many business owners rent commercial space and are required to obtain liability insurance. Often, this coverage requirement is a minimum of $1 million per event, with each event counting toward the general aggregate. It is not the same as the per-occurrence limit, though these two often have matching limits of $1 million. This coverage limit is tri...
While a medical expense is included in general liability insurance coverage limits, this is considered no-fault insurance and covers medical bills and first aid to those who obtain bodily injury while on-premises. It covers reasonable expenses subject to the medical expenses limit on the policy. When a claim occurs, the aggregate limit is diminishe...
Understanding when general liability insurance is required and what the policy limits are help you ensure that you are properly protected against various risks. Review the coverage with your agent and increase it where you think you have the most exposure. Remember that when a claim exceeds the limits, your business (and you) could be held responsi...
- Nathan Weller
- Bodily injury and property damage liability. General liability covers business-related incidents that result in bodily injury to a third party. This can include a customer slipping and falling on your premises or an employee accidentally dropping a toolbox on someone’s foot.
- Products-completed operations. General liability insurance coverage includes liability protection for both products and completed operations exposures. Products are any goods that you manufacture, sell, or distribute in your business.
- Personal and advertising injury. Not all injuries are physical. Any written or verbal communications that cause harm can also be covered under your general liability policy.
- Medical payments. Medical payments cover any non-employee medical or funeral related expenses for which your business is responsible. Of course, your coverage depends on your selected limits.
to-Premises-Rented-to-You Limit, payments under this coverage reduces the Each Occurrence and General Aggregate Limits. An Illustration of CGL Limits of Liability — Lucky’s Bakery The following is a fictional, yet real-world illustration of applying the CGL policy limits to various claims. The illustration starts with a fairly typical
Aug 14, 2023 · A general liability insurance policy can help cover claims that your business caused: Third-party bodily injury: If a customer gets hurt after slipping and falling in your store, they can sue your business. Your insurance policy includes bodily injury liability coverage, so it can help pay for their medical bills.
