deepthi sHow much will this actually cost me? It’s the first question that comes to mind for any business owner while seeking Commercial General Liability Insurance. You know you need insurance, but the pricing feels like a mystery wrapped in insurance jargon and confusing quotes.
There is no fixed price because the cost is determined by various aspects such as your industry, company size, risk exposure, and coverage limits.
In this blog, we will explore how much Commercial General Liability Insurance costs and what factors influence the rate.
Mitigata: India’s Leading CGL Insurance Partner
With more than 800 businesses from all across India relying on us, Mitigata has established itself as a trusted partner for Commercial General Liability insurance. We partner with major insurers, such as HDFC ERGO, Bajaj Allianz, and ICICI Lombard, to provide you with strong coverage backed by well-known insurers.
Why Mitigata?
Policies Specific to Your Industry: Whether you operate a factory, a logistics company, or a tech startup, we have the appropriate policy for your operations.
Quick Claims Processing: When things go south, the last thing you want to do is chase after assistance. Our 100% retention rate shows that we don’t disappear when you need us the most.
Clear Terms, No Hidden Gaps: Every policy term is explained clearly upfront. You’ll know exactly the inclusions, exclusions and what your financial responsibility looks like.
Trusted Partners: We work only with India’s most reputable insurers to offer better rates, faster processing, and reliable claim settlements.
Why Pay More When ₹3CR Cover Costs Just ₹15,000/Year
Commercial Liability Insurance Coverage: What Does It Include?
Before understanding cost, it’s important to know what CGL insurance actually covers. Here’s what’s usually included:
Body Injury: It covers situations where a customer or visitor gets injured while visiting your property or as a result of your activities. For example, suppose a customer slips on a wet floor in your store.
Property Damage: CGL pays for any accidental damage caused to someone else’s property by your employees or business operations.
Personal and Advertising Injury: Provides coverage for claims including copyright violations, slander, or the unintentional use of another company’s intellectual property in advertising.
Medical Payments: Covers medical costs for injuries resulting from your operations, even if a lawsuit is not filed.
Without this coverage, even small incidents might result in major financial losses. A small manufacturing business may face a claim of ₹10 lakh for property damage caused by a product failure. A strong CGL coverage would cover the majority of that expense, preventing the company from suffering losses.
Before you buy Commercial General Liability Insurance, read this. Here are the 10 best insurers in India.
Key Factors That Affect CGL Insurance Cost
The price of your CGL policy is based on your business risk, as well as the amount of coverage needed. Here are the main factors that influence the cost:
- Business and Industry Risks
Higher-risk businesses, such as construction, manufacturing, and logistics, will typically pay higher rates due to the frequency of accidents. Whereas a marketing agency will have fewer risk exposures physically, so their rates are usually much cheaper.
- Business Size and Revenue
Insurers often look at your annual turnover and employee count. The larger your business, the higher the risk exposure, leading to a rise in the cost.
- Amount of Coverage
More coverage means more protection, and it also means a higher premium. If you have larger clients or more valuable contracts, it could be wise to consider higher coverage.
- Claims History
Business owners who previously had claims could face higher premiums since insurers view them as higher-risk clients. A good claims record can help bring costs down in the future.
- Add-on Covers
Optional add-ons such as product liability, professional indemnity, and pollution liability raise the total cost, but they can fill important coverage gaps.
- Location of Operations
Where your business operates also affects the premium. For example, a factory in an industrial zone may face different pricing than an office-based company in a metro area.
One Policy.Every Risk Covered.
Conclusion
Coverage limits are the maximum amount that your insurer will pay for a claim/occurrence in a year. If you purchase a limit for your insurance policy that is too low, you may find yourself paying substantial amounts out of pocket. If you purchase a limit that is too high, you may end up paying for unnecessary insurance that offers limited or no value.
Let Mitigata help you choose wisely.
Contact us now and let’s shape the right CGL policy for your business.
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