Commercial General Liability Insurance provides protection against bodily injury and property damage claims for which a business becomes legally liable. As commercial general liability insurance is the foundation of commercial liability coverage it is important to have a good understanding of your policy and its coverages.
Who Is Covered?
The term “named insured” in a commercial general liability insurance policy refers to the policy holder listed on the policies declarations page. Determining the legal designation of the “named insured” listed on the declarations page of the policy helps to define who will be covered under the policy.
If the “named insured” operates as an individual, he or she along with his or her spouse are covered by the policy while acting in a legal capacity for the business.
If the “named insured” operates as a joint venture or partnership, coverage extends to members and partners and the spouses of either, while acting in a legal capacity for the business.
In the event the “named insured” operates as a limited liability company, the company along with its members and managers are covered while they are acting in a legal capacity for the business.
Finally, if the “named insured” operates as a corporation or association, the organization itself along with its executive officers and directors are covered by the policy, while acting in a legal capacity for the business.
Coverages
Commercial general liability insurance coverage applies in the event of a claim where the insured becomes legally liable. However, the coverage does not apply to all situations where the insured is legally liable for damages. Coverage is limited to those obligations listed in the insuring agreement of the policy and not otherwise excluded from the policy.
Bodily Injury or Property Damage – In the event that an insured becomes legal liable for “bodily injury” including pain and suffering, sickness or disease, or death, the bodily injury portion of the commercial general liability insurance policy offers protection.
Property damage coverage applies where physical injury occurs to tangible property, including loss of use, or where loss of use occurs on property that is not physically damaged.
Products and Completed Operations – Products and completed operations coverage extends to those bodily injury and property damage claims which are a result of the “named insureds” products or completed operations.
Personal And Advertising Injury – Personal and advertising injury protects the “named insured” for injuries which he or she become legally liable for due to an occurrence listed in the “Personal and Advertising Injury” definitions of the policy. These include but are not limited to malicious prosecution, false arrest, detention or imprisonment, oral or written publication of material which libels or slanders a person or organization, or copyright infringement.
Damage to Premise Rented to You – Subject to policy limits, this coverage protects the insured in the event of a claim, for damage resulting from causes other than fire, on a premise which they have rented.
Fire Legal Liability – This coverage offers protection when the “named insured” becomes liable for fire damage to a premise which he or she is renting or, with the owners consent, temporarily occupying.