Commercial liability insurance, also known as commercial general liability insurance, is a comprehensive type of insurance policy that is taken by businesses in order to get protection against liabilities of business risks. It is an insurance policy that provides coverage to businesses from bodily injuries and damages caused to the people in the business premises and operational damages. Since this policy is a comprehensive one, there are different types of coverage for a business to choose from.
Talking more about the coverage of commercial liability insurance there are two major types of coverage. The first includes the claims for the regular business operations at the physical business location. The second is the coverage for bodily injuries and damages caused by the business property. Apart from these, if a business requires any additional coverage, it can be purchased, barring the exclusions of commercial liability insurance.
Coming back to the coverage of commercial liability insurance, they can be broadly classified as:
Third-Party Bodily Injuries
These injuries are caused to people apart from you and your employees. This will include, injuries, sickness and accidental deaths caused due to the operation of your business. For example, if a customer slips and fractures a knee in your café, he will be covered under the commercial liability insurance.
Third-Party Property Damages
Sometimes your business operations can accidentally cause harm to other’s property. This could be an adjoining property or a public property. For example, if a pavement contractor accidentally damages the neighbor’s lawn, it will be covered under the commercial liability insurance.
Liability on Products
Businesses who are into the product industry need this coverage. If the product created by your business harms the consumers, it is covered under commercial liability insurance. For example, when a consumer falls from a faulty chair manufactured by your company.
A finished operation coverage covers the damages that are caused due to faulty service, right after a service is completed. For example, a roofing contractor finishes a new roof, but it leaks and causes damage to the interiors of the property.
Legal Tenants Liability
This liability is applicable to businesses that work on a rented property. If the rented property suffers damage due to the negligence of the tenants, then the reimbursement is covered by commercial liability insurance. For example, an office attic is damaged due to the overloading of stocks.
While commercial liability insurance is helpful in keeping the business running smoothly, there are certain damages that are not included such as pollution damages, professional service damages, etc. For these damages, there are other insurance policies available. To know more about them, get in touch with professional insurance providers in Edmonton.