Janardhan NWhat if one accident could erase years of work?
A customer at a restaurant suffers an allergic reaction, even after telling the staff about their allergy.
A loose piece of debris from a construction site crashes onto a passing car. A gym member injures themselves on faulty equipment.
A salon treatment goes wrong and leaves a client with burns.
These are not rare events. They have happened to real businesses, and in many cases, the result was a costly lawsuit.
For a small business, a single claim can hit hard. On average, a small business making $1 million a year spends about $20,000 on lawsuits annually.
For some, the damage is worse. Without the right protection, legal costs alone can push a business to close its doors.
Commercial General Liability (CGL) insurance is often the first policy a business secures for a reason. It covers a wide range of third-party claims – from injuries to property damage – so you are not left paying out of pocket.
With more than half of all civil lawsuits targeting small businesses, this protection can be the difference between surviving a claim and shutting down for good.
In this blog, we will look at how CGL insurance works for small businesses and the benefits it offers to keep you safe from unexpected claims.
Is CGL Insurance Necessary for Small Businesses?
For growing and small businesses, every rupee counts, and even a word matters for the reputation.
Many business owners think Commercial general liability insurance is for the big players, but no business is completely safe from risk.
A single lawsuit. An injury claim. Even small property damage. Any of these can drain your funds fast.
But CGL insurance for a small business is like a safety shield. It covers bodily injury, property damage, personal and advertising injury caused by business operations, products, or employees.
In industries like e-commerce, hospitality, construction, or professional services, such liability risks are very common in day-to-day operations.
One incident can hit you with huge legal costs and medical bills, but general liability insurance helps make sure that you don’t have to pay them out of your pocket.
All-in-One Liability Protection Starting at ₹15,000/Year*
Key Benefits of CGL Insurance for Your Company
The importance of commercial general liability insurance goes far beyond basic protection. Here are the top reasons why every business should consider it.
1. Protection Against Third-Party Claims
CGL insurance provides you with the financial protection from claims for bodily injuries, property damage, and personal or advertising injuries. More precisely, it covers things resulting from the company’s products, employees, or operations.
2. Coverage for Legal Defense Costs
Legal disputes can get expensive fast. CGL insurance helps you in paying court fees and settlements if your company gets sued. You also get access to legal experts who can guide you through the process.
3. Medical Expenses Coverage
A CGL policy helps in covering medical bills if you get injured on premises or as a result of your business operations – even if no lawsuit is filed. Paying quickly can help settle the matter before it turns into something bigger.
4. Protection from Advertising and Personal Injury Claims
If your business runs ads or has an online presence, there is a high chance that you could face claims like defamation or copyright issues. In such cases, a CGL policy will help you protect your company’s reputation and finances.
5. Product and Completed Operations Liability
Problems with a product or service can show up long after a job is done. If defects or mistakes cause harm, CGL insurance covers those claims. This keeps you from being exposed to lawsuits months or even years later.
6. Preserves Business Assets and Continuity
A single lawsuit could wipe out years of hard work. However, having a CGL policy can keep your operations running without disruption.
7. Enhances Credibility and Meets Contractual Requirements
Many clients and partners require proof of insurance before they will do business with you. Having a CGL policy satisfies these requirements and builds trust with stakeholders.
8. Part of a Strong Risk Plan
CGL insurance is a smart way to manage risk. It lets you shift liability to an insurer. This way, you can focus on growing your business without constantly worrying about lawsuits.
We Cover the Gaps You
Didn’t See Coming
Real-Life Examples of Commercial General Liability in Action
Example 1: Retail Slip-and-Fall Incident
In a clothes store, a customer gets injured after stumbling on a damp floor. As a result, the consumer sued the company for negligence, claiming that the retailer failed to provide a safe atmosphere. However, the liability insurance saved the company by paying the legal bills without causing the store to incur heavy financial damages.
Example 2: Electrical Damage Caused During Service
An electrician causes a short circuit while working in a client’s home. This results in significant damage to the electrical system. The electrician’s CGL policy covers the repair costs. Without insurance, they could have faced financial ruin.
Example 3: Restaurant Trademark Dispute
The Monster Shawarma restaurant of Ohio was sued by Monster Energy Company for trademark infringement. The beverage giant claimed the restaurant’s sign looked too similar to its own branding, which it has used since 2002. Post this, the company took the matter to court seeking a jury trial.
Example 4: False Advertising over ‘Boneless Wings’
In Illinois, a customer sued Buffalo Wild Wings for false advertising. He claimed the restaurant’s “boneless wings” were actually chicken nuggets rather than deboned wings, leading to financial loss. The lawsuit was filed in March 2023.
These are some of the examples of commercial general liability insurance and its effectiveness in keeping businesses operational even when unexpected incidents occur.
How to Choose the Right CGL Policy
Always select a policy that matches your business risks, industry requirements, and budget.
At Mitigata, we make this process simple. Our team works with top insurance providers to compare options and tailor a plan that matches your business needs.
Here is why 500+ businesses trust Mitigata for the best CGL insurance at the most cost-effective rates
- Round-the-clock Expert assistance whenever you need it.
- Fair pricing without any hidden costs.
- Full coverage from policy selection to quick and easy claims.
Don’t Let a Customer Lawsuit Shut Your Business Down
Conclusion
The difference between a business that survives a lawsuit and one that shuts down often comes down to having the right insurance coverage. The benefits of CGL insurance go beyond financial protection – they safeguard your brand, your assets, and your future.
Mitigata ensures you get the right policy at the right price, without unnecessary complexity. Speak to our experts today and secure your business with confidence.
Get Your CGL Insurance Quote from Mitigata Today Even before applying, make sure your security measures match the basic requirements most insurers look for.
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