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What Is Commercial General Liability (CGL) Insurance?
Commercial general liability insurance, or CGL insurance, helps protect your business from claims that it caused bodily injuries or damage to another person’s property. This coverage is also known as general liability insurance or business liability insurance.General liability insurance definitions can get confusing. Insurance companies are often asked, “What is general liability insurance?” We can answer this question and help you understand this coverage.
What Is the Difference Between Commercial General Liability Insurance and General Liability Insurance?
There isn’t a difference between commercial general liability insurance and general liability coverage. Both of these terms refer to the same insurance.
What Does Commercial General Liability Insurance Cover?
Commercial general liability insurance covers claims arising from injuries or damage that your business caused, such as:
- Damage to someone’s property
- Bodily injury
- Personal injury, like libel and slander
- Advertising injury
These kinds of claims are more common than you think. In fact, they can come up during normal business operations.
- Attorney and defense costs
- Evidence and documents gathering
- Medical payments
- Judgments
- Settlements
These expenses can add up, and your costs can rise if it takes a long time to resolve the case. Even if your customer drops their lawsuit, you’ll still have legal defense costs, like attorney fees. That’s why commercial general liability insurance is important. General liability insurance helps small business owners navigate lawsuits and claims. Without it, your business and its assets are at financial risk.
Cost of Commercial General Liability Insurance (CGL)
On average, the annual premium for general liability insurance costs $805, or about $67 a month.1 Keep in mind that every business has different needs for liability coverages. Your general liability insurance cost will vary based on several factors, such as your:- Type of business: The more risk your small business faces, the higher your rate can be.
- Location: Less populated areas may mean your business faces less risk. So, this can reduce your rate.
- Revenue: The higher your business’ annual revenue or sales, the more you may pay to obtain insured coverage.
- Coverage limits: If you choose a higher limit for your CGL insurance policy, your rate will increase.
Who Needs Commercial General Liability Insurance?
Commercial general liability insurance is important for businesses of all sizes. It can help:
- Sole proprietors
- Small business owners
- Large companies
We offer general liability insurance coverage to many industries, including:
Liability Coverages To Consider in Addition to Commercial General Liability Insurance
Don’t forget that commercial general liability insurance doesn’t cover all claims. That’s why many businesses choose to get other liability coverages. This helps protect against risks not covered by CGL insurance. Some other types of insurance you can get include:Professional liability insurance to help cover claims arising from a mistake or omission in your professional services.
Employment practices liability insurance to help cover claims of:
- Discrimination
- Wrongful termination
- Harassment
Workers’ compensation insurance to help your employees recover from a work-related injury or illness.
Product liability insurance for businesses selling products to customers or clients. This coverage is part of a general liability insurance policy, but you can also get it as a standalone policy.
Commercial auto insurance to help cover the costs of an auto accident that occurs while you or an employee are driving a company-owned car for business.
We also offer complex liability solutions to help businesses facing “higher hazards,” like manufacturers or wholesaler-distributors.
Get a Commercial General Liability Insurance Quote
We’re here to help you every step of the way and can work with you to:
- Get your commercial general liability insurance online today
- Request a certificate of liability insurance
- Add an additional insured to your policy
- Learn more about when is liability insurance needed
We’re backed by more than 200 years of experience and have helped over 1 million small business owners. We know how to meet your business’ unique needs and will help ensure you get the coverages that fit your business best.
Get a commercial general liability insurance quote today and find out how we can help protect your small business.
Last Updated: November 20, 2023
1 Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
Additional disclosures below.