Commercial general liability (CGL) policy. A standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.

The policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees. It covers non-professional negligent acts. Understanding this coverage is an important first step in managing CGL risks.

Here are just a few examples of situations in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages:

• While visiting your business, a customer trips on loose flooring and is injured.
• An employee in your painting or construction business accidentally leaves water running, causing substantial damage to a customer’s home.
• A class action lawsuit is filed against your business, alleging advertisements constituted misleading information.