What are various limits in a CGL Policy?

 

Organisations purchasing a Commercial General Liability Insurance Policy (also known as CGL Policy) should understand how the various limits apply and how they impact the Commercial General Liability Insurance Policy Cost.

What is the Commercial General Liability Insurance Policy?

A Commercial General Liability Insurance Policy also known as a CGL Policy is a type of liability Insurance Policy which pays for any type of Bodily Injury or Property Damage suffered by third parties in the company’s premises or because of using the Insured Party’s Products

What is General Aggregate Limit in a CGL Policy?

General Aggregate Limit is the maximum amount that the Insurance Company will pay during the Policy Term in event of a Commercial General Liability Claim. The Insurance Company has no further liability after the limit has been exhausted.

Also, every time there is a claim under your Commercial General Liability Insurance Policy, the General Aggregate Limit of the CGL Policy gets eroded, meaning the General Aggregate Limit gets reduced by the amount of Claim.

What is the Products-Completed Operations Limit in a Commercial General Liability Insurance Policy?

Products-Completed Operations Limit in a Commercial General Liability Insurance Policy (CGL Policy) covers bodily injury and property damage to third parties caused as a result of your COMPLETED FAULTY WORK.

The requirements for Products-completed operations hazard to trigger are as follows:

i) Products-Completed Operations Hazard triggers when the work has been completed and is not in process

ii) Products-Completed Operations Hazard triggers when the work IS completed away from the Insured’s named premises

What is Personal and Advertising Injury Limit in a Commercial General Liability Insurance Policy?

The Coverage B Section of the CGL Policy provides cover for Personal and Advertising Injury Liability. Personal and Advertising Injury Limit in a Commercial General Liability Insurance Policy provides cover for both Personal Injury Liability and Advertising Injury Liability.

Personal Injury Liability Coverage in a CGL Policy provides cover for things like Libel, Slander, Malicious Prosecution, Breach/Invasion of Privacy etc. while Advertising Liability Coverage in a CGL Policy provides coverage for things like Copyright and Trademark Infringement, Misappropriation of Advertising Ideas etc.

What is Medical Expenses Limit in a Commercial General Liability Insurance Policy?

The Coverage C Section of the Commercial General Liability Insurance Policy includes cover for Medical Payments. The CGL Insurance Policy Coverage C pays for the Medical Bills because of Third Party Bodily Injury or Property Damage irrespective of the Insured Party’s negligence. It is a No-Fault Liability Cover and pays for small injuries to the customer’s on the Insured Party’s Premises. The Medical Expense Limit in a Commercial General Liability Insurance Policy applies to each person separately.

What is the Damage to Premises Rented to the Insured Limit in a Commercial General Liability Insurance Policy?

Damage to Premises Rented to the Insured Limit in a CGL Policy is the maximum payable amount for property damage to any premises rented to the Insured under Coverage A: Bodily Injury and Property Damage Section of the Commercial General Liability Insurance Policy.