What does Commercial General Liability Insurance (CGL) primarily cover?

Commercial General Liability Insurance (CGL) is designed to provide coverage for a wide range of risks that contractors and businesses face. This insurance primarily covers various forms of injury, specifically bodily injury and personal injury, as well as property damage. It is intended to protect businesses from claims that arise due to accidents or incidents occurring on their premises or as a result of their business operations.

Bodily injury refers to physical harm that can occur to individuals, whereas personal injury involves non-physical harm, such as defamation or invasion of privacy. The inclusion of both types of injuries under CGL policies ensures comprehensive coverage, allowing businesses to defend against a variety of claims that may arise from their operations.

Additionally, CGL often includes coverage for advertising injury, which relates to issues that may arise from marketing activities. The policy's broad nature is what makes it particularly important for contractors and businesses, as it provides critical protection against various potential liabilities that could significantly impact their financial standing.

The understanding that CGL covers not just bodily and property damage but also personal injury is essential for any contractor to ensure they are adequately protected against the risks associated with their operations.