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Commercial General Liability (CGL) Insurance Policy

A business entity faces several risks in its day to day operations. With its varied operations and activities an organization might unwittingly and unknowingly cause damages to a third party for which it might be financially liable. Such financial liability might incur huge expenses for the organization thus hampering its profitability and goodwill. An insurance policy is needed to protect the business entity against such financial risks and the answer is a Commercial General Liability Insurance Policy.

Commercial General Liability (CGL) insurancein Indiacovers an organization against risks and liabilities faced for causing any third party damage or injury.


A Commercial General Liability Insurance policy covers the business against the following risks of insurance claims:

  • Bodily Injury – if any third party is physically harmed because of the company’s fault, such bodily injury is covered under a CGL policy. For instance, if a customer falls down in a retail outlet and fractures his/her leg, the business might be held responsible for the injury suffered.
  • Property Damage – any damage caused to a third party’s property by the company. For instance, if the company’s operations cause a damage to any person’s property.
  • Advertising Injuries – any copyright or trademark infringement or any other injury caused due to the company’s advertisement.
  • Personal Injury – harassment or discrimination against a person.
  • Product Liability – damages caused due to product manufactured by the company.

The policy covers the defense costs associated with the above damages, cost of bail bonds, settlements or penalties paid, bond costs to release attachments and interests on full judgement.

Importance of a CGL policy

A Commercial General Liability policy helps the business entity in a number of ways which are discussed below:

  • The policy helps in protecting the entity against sudden and unexpected financial expenses arising out of any of the covered liabilities. Thus, it ensures profitability of the organization.
  • The policy also helps the business meet its Corporate Social Responsibility.
  • The reputation and goodwill of the business is also protected as the policy promptly pays for any injuries caused by the business which earns it credibility.
  • By preventing any unexpected financial losses, a Commercial General Liability policy also keeps the business solvent in difficult financial environments too.
  • Read more - Need of a Commercial General Liability Insurance

Paybima has a wide variety of Commercial General Liability Insurance plans offered by different insurers. You can find a relevant policy along with the Commercial General Liability insurance quote on Paybima. Given its importance, every business organization must have CGL coverage and if you are looking for a good policy you can visit Paybima and find one easily.