Commercial General Liability Insurance

Photo by stocknshares/iStock / Getty Images
Photo by stocknshares/iStock / Getty Images

Commercial General Liability (CGL) is a business insurance coverage written to cover your exposure to damages by third parties for bodily injury or property damage claims or lawsuits.  Most general liability insurance policies in Oklahoma (OKC) and across the country are very broad and cover some of the following exposures:

  • Ownership, maintenance or use of the premises
  • Operations conducted or performed on or off the premises
  • Written contracts and agreements
  • Products manufactured, sold or distributed
  • Completed operations
  • Personal injury
  • Advertising injury
  • Medical payments on the premises or at jobsites, without regard to fault

General Liability Insurance Limits

General liability insurance limits, whether you are in Oklahoma City (OKC) or in another state, may vary but standard limits available are $1,000,000 per occurrence.  General liability insurance will also contain one or more "aggregates",  Aggregates are the most a policy could pay in a year for that type of coverage.  The standard policy will have a "products and completed operations aggregate" and a "General Aggregate" for claims other than products or completed operations.  If you wish to have a higher limit of general liability insurance than 1 or 2 million, you will have to purchase a Commercial Umbrella Insurance or Excess Insurance policy.

General Liability Insurance Premium Basis

The premium basis will vary on policies based on the type of business you own.  Property type exposures tend to be rated on area while service and construction tend to be rated on Sales or Payroll.  Each policy will have a page that lists your exposures and codes, the basis of premium, and the exposure they are using to determine your premium.  You should review these to make sure they are accurate.

General Liability Insurance Endorsements

Endorsements are used to modify the standard general liability insurance policy.  Some endorsements expand coverage while others limit coverage.  These can be used to customize your general liability insurance for your type of business.  Some types of widely used endorsements are:

  • Additional Insured - General Liability Insurance
  • Deductible - Liability Insurance
  • Exclusion Endorsements
  • Amendment of Limits
  • State Amendatory
  • Insurance Company Specific