Commercial general liability insurance is one of the most critical (and popular) types of liability insurance for practically any company that sells tangible or intangible goods. Commercial general liability insurance can be used in various situations to offer coverage against legal claims. Here are some examples of real-life situations in which insurance, as mentioned above, might be helpful.
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1. Your customer fell on your property and got injured.
This is a common scenario in which CGL insurance kicks in. Assume your workplace's floor is wet and slick. There's even a notice warning tourists of the "wet floor." One of your customers failed to notice the sign and proceeded to enter anyhow. They were injured when they fell and injured their spinal cord. The ordinary commercial responsibility will cover that person's emergency medical bills in this situation. Furthermore, if that customer decides to sue your business, the insurance would cover your legal fees.
2. Your product caused an injury to the customer.
You did all possible to ensure that the end product that the consumer receives is excellent. The product was put through a series of tests to ensure its quality. But something wasn't quite right.
When the customer obtained the product and started using it, it somehow hurt them physically. (For example, the product's packaging had sharp edges that wounded someone's finger.) In this case, the client may request reimbursement for medical expenses. They may even file a lawsuit against your Company as a result of such a product. Both public and product liability are covered by comprehensive commercial general liability insurance. It would provide you with the necessary coverage in the situations indicated above.
3. Your employee spilled something on the customer's property.
A client visited your office. You ordered mango juice for them since you wanted to be a good host. While serving them the juice, one of your employees spilled it on their expensive purses.
This is considered property damage. Damaged property can be replaced with the help of commercial general liability insurance. Furthermore, if a client decides to sue your Company for this situation, the insurance covers your legal bills, court charges, and other legal expenses.
4. You copied someone else's idea in your ad campaign.
It's possible that this was inadvertent! You're getting ready for your year-end sales campaign. To employ in this sales campaign, you build a referral program and social media copy. While you successfully increased sales, one of your competitors objected, saying that you plagiarized their ideas. Such claims of stolen pictures come under the banner of advertising injury. Your CGL plan will protect these stolen ideas.
5. You inadvertently did or said something discriminatory.
Thanks to social media, this is more widespread than you might think. One of your marketing team employees sent out a tweet that appeared prejudiced toward a specific group.
People were offended, and they chose to sue your Company for "personal injury." In this situation, your CGL coverage can protect you from legal claims originating from an unintentional action misinterpreted by others. These are five real-life scenarios in which commercial general liability insurance can help. The CGL plan can safeguard your firm from legal duties in various ways, and create the road for constant expansion and long-term survival.
So, if you haven't already, got a CGL plan that fits your needs? Connect with a licensed CGL insurance broker in Mississauga and get their help in finding the right plan. Commercial General Liability Insurance is one of the most important types of insurance for a business and is a must-have policy.
In today's litigious environment, businesses are more likely to be sued by third parties, such as their customers, for any bodily injury or property damage they may sustain. Companies have been sued for minor incidents like a Customer slipping and getting injured within the Business Premises or for the Company's Advertisements containing Misleading Information.
Even though these instances are insignificant, an adverse court judgment has resulted in the Company having to pay a significant sum of money to defend such claims in court and compensatory damages. With the rise in litigation, such situations are only expected to become more common. To protect oneself from such claims, every business should acquire Commercial General Liability Insurance.
If you are looking for a top-rated commercial insurance broker in Mississauga, get in touch with us today.