What Does Commercial General Liability (CGL) Insurance Cover?

Running a business comes with its fair share of risks. Accidents, property damage, or lawsuits can occur even when you take every precaution. That’s where Commercial General Liability (CGL) insurance comes in.

CGL insurance is a cornerstone of business protection. According to the Small Business Administration’s guide to insurance basics, it helps protect your company from common business risks, safeguarding finances, reputation, and future growth.

What Is Commercial General Liability Insurance?

Commercial General Liability (CGL) insurance is designed to protect businesses from financial loss arising from claims of:

• Bodily injury to third parties

• Property damage caused by your business operations

• Personal and advertising injury (like libel or slander)

Think of CGL as your business’s first line of defense against unexpected lawsuits or accidents. For a detailed explanation, see the Insurance Information Institute’s guide to Commercial General Liability. Whether you operate a small shop in Hartford or a construction company in New Haven, having the right CGL policy is essential.

Key Coverages Under a CGL Policy

1. Bodily Injury Liability

This coverage protects your business if someone is injured on your property or as a result of your operations. Examples include:

• A client slipping on a wet floor at your office

• A delivery driver getting injured at your site

It typically covers medical expenses, legal fees, and settlements.

2. Property Damage Liability

CGL insurance also covers damage your business may cause to someone else’s property. This can include:

• Tools or equipment causing damage at a client’s site

• An accidental fire starts at your office and affects nearby buildings

This coverage ensures your business isn’t left paying out-of-pocket for costly repairs or replacements.

3. Personal and Advertising Injury

Your business can be held liable for claims that arise from:

• Libel, slander, or defamation

• Copyright infringement in advertising

• Misleading marketing claims

CGL insurance can help cover legal defense costs and settlements.

4. Medical Payments

Some CGL policies include medical payments coverage, which pays for minor injuries regardless of fault. For example, if a customer trips over a cable and sprains an ankle, your policy may cover their medical bills.

What CGL Insurance Does Not Cover

It’s important to note that CGL is not a catch-all policy. It generally does not cover:

• Employee injuries (covered by Workers’ Compensation insurance)

• Professional mistakes or negligence (covered by Professional Liability insurance)

• Intentional acts or criminal activity

• Auto accidents (covered by Commercial Auto insurance)

Understanding these limitations helps you determine if additional policies are necessary for full protection. The National Association of Insurance Commissioners explains standard CGL coverage in detail.

Why Connecticut Businesses Need CGL Insurance

Connecticut business owners face unique risks, from crowded urban environments to liability concerns in construction and service industries. A CGL policy can:

• Protect your business from costly lawsuits

• Provide peace of mind for business owners and clients

• Meet contractual requirements for clients or landlords

Whether you run a restaurant in Stamford, a construction company in Bridgeport, or a retail store in New Haven, CGL insurance safeguards your business’s bottom line. For Connecticut-specific business insurance guidance, visit the Connecticut Department of Consumer Protection’s business insurance resources.

How Much Does CGL Insurance Cost in Connecticut?

The cost of a CGL policy depends on several factors:

• Business type and industry

• Annual revenue

• Number of employees

• Claims history

On average, small businesses in Connecticut may pay $500–$2,500 annually, while larger operations or high-risk industries may pay significantly more. For national cost trends, check out Small Business Trends’ guide on CGL insurance costs. Working with an experienced Connecticut insurance broker can help you find a policy that fits your budget and needs.

Choosing the Right CGL Policy

When selecting a CGL policy, consider:

1. Coverage limits – Typically expressed as per occurrence and aggregate limits

2. Exclusions – Ensure the policy doesn’t leave gaps

3. Additional endorsements – Optional add-ons for specialized coverage

Consulting an insurance broker in Connecticut can help tailor your coverage to your specific business operations.

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FAQs About CGL Insurance

Q1: Is CGL insurance required by law in Connecticut?

A: No, CGL insurance is not legally required, but many clients and landlords may require it for contracts and leases.

Q2: Can CGL cover incidents at job sites outside Connecticut?

A: Yes, most policies offer coverage across multiple states, but it’s important to confirm territorial limits.

Q3: Does CGL cover cyber attacks or data breaches?

A: No, CGL does not cover cyber liability. A separate cyber liability insurance policy is recommended.

Q4: Can I bundle CGL with other insurance?

A: Yes, many Connecticut businesses combine CGL with Business Owners Policies (BOP) for broader protection.

Final Thoughts

Commercial General Liability insurance is an essential safeguard for any Connecticut business. It protects you from common risks like bodily injury, property damage, and advertising claims, helping keep your business secure.

Don’t leave your business exposed. Work with a trusted Connecticut insurance broker to ensure your CGL coverage fits your unique needs.