Also known as: Commercial General Liability Policy
Protection against third-party claims for bodily injury or property damage arising from your business operations.
Commercial General Liability covers your legal liability to third parties for bodily injury or property damage caused by your business operations, premises or products. It is the broadest liability cover available to most businesses and typically forms the base layer of a liability programme, with specialist covers such as professional indemnity or product recall layered above it where needed.
Any business where third parties come into contact with premises, operations or products. Manufacturers, retailers, hospitality operators, healthcare providers, contractors and event organisers. Commercial contracts and tenders increasingly specify minimum CGL limits as a condition of award, which frequently drives the purchase.
Limits are set per occurrence and in the annual aggregate. Common commercial limits in India range from one crore to twenty-five crore, with larger manufacturers and exporters carrying considerably more. The right limit reflects worst-case exposure and any contractual minimums — not what feels comfortable.
The difference between a policy that responds and one that disappoints usually sits in details that are easy to overlook at purchase.
Not sure which combination fits your business?
Speak to an AdviserPublic liability typically covers premises and operations only. CGL extends to products liability and generally offers broader cover. In the Indian market the terms are sometimes used interchangeably, which makes reading the wording essential.
No. Employee injury falls under Workmen’s Compensation, which is a separate and in many cases statutory cover.
Usually yes, and often in addition to the policy limit. Where defence costs sit within the limit, they erode the amount available to settle the claim.
Product liability covers harm caused by your products. CGL is broader, covering premises and operations as well. Most businesses need both, frequently within a single policy.
Frequently, yes. Public sector and large private tenders commonly specify minimum liability limits as a qualification requirement.
The policy responds to incidents occurring during the policy period, regardless of when the claim is made. Claims-made policies respond only to claims notified during the period, which matters when cover changes hands.