If you own a business, you likely do not generally anticipate that anything is going to happen to ruin it. However, things do happen, and people do need to take the appropriate precautions. Commercial insurance is one way that business owners can protect themselves in the event of unexpected crisis situations. A Commercial General Liability (CGL) policy will protect your business from financial losses if you end up liable for injury or property damage.
A CGL insurance policy will typically cover any legal costs that you would incur and will pay for any damages that are caused by your business. These include property damage and bodily injury. There are few different types of damage that can harm a business. One of these is the category of property damage and bodily injury. This coverage involves protection in the case that someone’s property is actually damaged or an individual suffers injuries as a result of the business’s actions. There is also personal and advertising injury coverage, which includes slander, libel, malicious prosecution, use of another’s advertising policy infringing on another’s copyright, and similar incidents. These are events that could cost the business money that do not involve physical damage or injury but a different type of damage and injury. There is also medical payments coverage, which protects the business in the case where someone who is not employed by the company ends up in an accident on the premises of the insured business or as a result of being exposed to the operations of said business. These include employment practices liability insurance and workers’ compensation. If you want to file an accidental damage insurance claim, you will want to make sure that the type of event that led to the claim is covered in your insurance policy. You will want to read through your policy and then talk to your insurance agent or company about how much coverage you will receive for this specific event.
In addition, after a business ends up losing property, business interruption insurance is quite important. There are three major types of business interruption insurance. These include regular business interruption insurance, extended business interruption insurance, and contingent business interruption insurance. Regular business interruption insurance is meant to compensate the insured business for any inconvenience during the period of restoration of the covered property. Extended business interruption insurance is meant to provide coverage for any income that is lost between the time that the property has been repaired and the time when the business reaches its pre-loss levels of income. Contingent business interruption insurance gives the business coverage for any loss of income that results from physical damage to the property of suppliers, providers, or consumers that would end up affecting the bottom line of the business. The latter two types of coverage are often offered as extensions of the business interruption coverage, even though the business will have to pay an additional premium for each one.
When a business needs to file claims due to some sort of damage, whether they be accidental damage or business interruption claims, there is always the possibility that these claims could be denied. When a business has to deal with denied insurance claims, the business will often end up having to pay for the damages. This is why you should make sure to be familiar with everything that is covered, so that you can take extra care to avoid events that are not covered.