A business is covered by a general liability insurance Malaysia policy in the event of physical harm, personal injury, or property damage resulting from operations, products, or accidents that take place on the business’s property. Even though it does not cover all potential dangers, general commercial liability is considered comprehensive business insurance.
Knowing General Commercial Liability (CGL)
There are several levels of coverage for commercial general liability plans. A policy may contain premises coverage, which defends the company against lawsuits brought against its actual site while conducting ordinary business. It might also include protection against bodily harm and property loss brought on by finished goods or services rendered elsewhere.
Purchasing excess liability insurance can cover claims exceeding the CGL policy’s limit. Exclusions to what activities are covered exist in some commercial general liability plans. For instance, insurance might not pay for the expenses related to a product recall.
Before acquiring commercial general liability insurance, the company must understand the differences between a claims-made policy and an occurrence policy. Regardless of when the claim occurred, a claims-made policy offers coverage anytime a claim is made. An occurrence policy is distinct because it still covers claims if the claim event occurred when the policy was in effect.
Businesses may also obtain insurance covering other business hazards and general commercial liability. For instance, the company might get employment practises liability insurance to defend against discrimination, wrongful termination, and sexual harassment accusations. Additionally, it can buy insurance to cover mistakes and omissions in financial reporting statements as well as damage claims brought on by the activities of its directors and officers.
Special Considerations
Depending on operational requirements, a firm may be required to designate additional insureds on their commercial liability insurance policy. This frequently occurs when companies sign a contract with another organisation.
For instance, if ABC Co. and an auto repair shop sign a contract for ABC Co. to clean the shop, ABC Co. can ask the shop owners to add ABC Co. as an “additional insured” to their commercial general liability policy.
Typical Commercial General Liability Example
Following are some instances where CGL would be necessary:
- A consumer walks into a store where the floors have just been washed and polished, making them exceedingly slick. The client falls to the ground, breaking their leg.
- When performing electrical wiring work at a customer’s house, one company’s employees unintentionally starts a fire.
- An individual makes a libel or slander claim due to a company advertisement.
A commercial general liability insurance policy may provide coverage for the cost of retaining counsel to defend the business in each situation or for the expense of paying the claims. If a company makes many claims under its CGL insurance, the insurer may increase the cost of the policy’s premiums.
What Damages Are Covered by CGL Insurance?
Commercial general liability insurance Malaysia covers injuries to people or property damage on a business’s property. This kind of insurance can shield a company from slander, libel, and advertising harm lawsuits.
What Does Commercial General Liability Insurance Exclude?
Most CGL insurance does not protect against intentional or anticipated damage by the insured. Additionally, they do not cover losses brought on by intoxication (in industries connected to the sale of alcohol), pollution, autos or other vehicles, harm to a company’s property, or other liabilities that the insured might incur. A company that takes on these risks needs more insurance to be protected appropriately.
If your company are looking for this type of insurance, you may schedule a call with specialist HanHan to learn more about general liability insurance.
Article posted by The Posting Zone
