Commercial General Liability insurance (CGL) is deemed as a necessary protection against any third-party liability arising out of physical injury or property damage to the said party in the premises of your organization. It also includes any claims made due to the low-quality product, errors of libel and slander or invasion of privacy that may have been mistakenly committed by your organization; affecting the health and reputation of third-party.
This is a comprehensive policy that offers multiple kinds of protection from third-party claims. If you are in a partnership business, this policy will protect you from the claims made from your partner. Similarly, claims made on the subsidiaries of your organization can also be availed under this cover.
Although, it is recommended that each organization must avail this liability insurance cover to protect itself from expensive lawsuits or obligation to compensate the third-party arising out of unexpected mishaps; there are a few companies for which this becomes the top most policy in their priority list.
Need for CGL Cover – Organisations
Advertising firms are responsible for creating print or visual content to promote the product of an organization. All such companies adopt their own unique style to bring the product of the company in public view. But, consider a case in which the advertising strategy to promote a product seems to be similar to that adopted by your rival company. This may include a case of libel and slander on your part.
In the ever-growing world of advertising, even if you take utmost care not to cross the line and always bring original content on the public platform, such cases might occur without your prior knowledge. There may be a discord between you and the rival company whose reputation is being affected in such situations, and you might have to incur the compensation expenses to the other party. In some cases, advertising agencies might also be held responsible for the invasion of privacy.
A CGL policy protects you from such unexpected mishaps and bears the financial or legal expenses of the case if taken to court.
The world of media is becoming more challenging day-by-day. With the ever-growing demand to bring forth the truth and to present everything in a dramatic manner, media houses like newspaper and electronic media might sometimes cross their limits. This might harm the reputation of a celebrity in public eye, and the media is always at a risk of being sued in such cases.
Newspaper houses are in the business of presenting unbiased printed views on any political happening but if the view expressed affects a third-party person or organization; it can lead the concerned newspaper office in serious trouble.
So, it is mandatory for any type of media organization to avail a CGL policy to protect itself from such risky situations.
Retail, wholesale, and mall owners must buy a general liability insurance policy. This is to cover the medical and hospitalization costs of physical injury or property damage of third-party in the premises of your shop. Consider a situation in which the fire that breaks out in your premises not only harms a large number of customers present in your shop at that time but also harms some part of the adjacent property and the people present there. The total compensation cost in such a case can drain your savings in a fraction of a second in the absence of a suitable CGL policy.
So, all the shop owners must buy this cover to protect themselves from the unnecessary financial burden that may crop up in such situations.
The companies that are in the business of building housing societies, corporate offices and other kinds of infrastructure must avail a CGL cover to ensure proper compensation to a third-party in the case of physical injury or disablement. Construction of any building or flyover requires great coordination between the laborers as many complicated machines and equipment are involved in this business. In case any third-party crosses the boundary of caution and gets injured, there is a risk that all the onus of such an incident might come on the company itself.
So, it is feasible for all companies involved in construction to avail this insurance policy.
Just like a construction business, manufacturing of products is a difficult task. Certain manufacturing plants like sugar and oil manufacturing plants are also open to third-parties sometimes. These involve machinery that is dangerous for any inexperienced individual.
In case a third-party is injured due to such complex machinery, the loss, and the compensation for it may be huge. A commercial general liability insurance policy protects the manufacturing firms from liabilities arising out of such unexpected mishaps.
Whichever type of business you are running, you will still need to compare and select the most suitable public liability policy for your needs. Online insurance brokers can be of significant assistance to you in this direction. Also, they offer 24×7 support for the management of the policy, and help you file the proposal and claims.
By: Deepti Verma
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