Commercial general liability (CGL) insurance is a type of policy that provides coverage to a business for bodily injury, personal injury, and property damage caused by the business’s operations, products, or injuries that occur on the business’s premises.
Commercial general liability insurance is considered comprehensive business insurance, though it does not cover all risks that a business may face.

• Commercial general liability insurance is a form of comprehensive insurance that offers coverage in case of damage or injury caused by a business’s operations or products, or on its premises. 
• There are two types of CGL policies: a claims-made policy that covers claims regardless of when the event took place, and an occurrence policy where the event must take place during a set period. 
• Companies can add other companies or individuals they contract with to their commercial liability insurance policy as an “additional insured.”
• Commercial general liability policies may cover the cost of any accidental damages because of the business’ operations or the legal costs of defending a suit.
• Commercial general liability does not provide protection against intentional damages, or any type of accident involving automobiles, aircraft, or watercraft.

Understanding Commercial General Liability Insurance

Premises Coverage 
Commercial general liability policies have different levels of coverage. A policy may include premises coverage, which protects the business from claims that occur on the business’s physical location during regular business operations.
It may also include coverage for bodily injury and property damage that is the result of a finished product or service done at another location.
Excess Liability Coverage 
Commercial insurance companies also sell excess liability coverage, which can be purchased to cover claims that exceed the limit of the CGL policy. Some commercial general liability policies may have exclusions that restrict what actions are covered. For example, a policy may not cover the costs associated with a product recall.
Claims-Made vs. Occurrence Policy 
When purchasing commercial general liability insurance, it is important for the business to differentiate between a claims-made policy and an occurrence policy.
A claims-made policy provides coverage for whenever a claim is made, regardless of when the claim event happened.
An occurrence policy covers claims where the claim event occurred during the time of the policy even if the policy is now expired.
Other Types of Policies 
In addition to commercial general liability policies, businesses may also purchase policies that provide coverage for other business risks.
For example, the business may purchase employment practices liability coverage to protect itself from claims associated with sexual harassment, wrongful termination, and discrimination. It may also purchase insurance to cover errors and omissions made in financial reporting statements, as well as coverage for damages, resulting from the actions of its directors and officers. 
A typical commercial general insurance policy covers accidental damage or injuries but does not cover injuries that are intentional or could be expected to happen.

Some examples that would require CGL include the following:

• A customer enters a place of business where the floors have recently been cleaned and polished, and as a result, are very slippery. The customer slips on the floor and breaks a leg.
• One of the employees of an electrical company visits a home for an electrical wiring job and accidentally causes a fire in the customer’s home.
• An advertisement placed by the business results in an individual claiming libel or slander.

In each of these cases, a commercial general liability policy might cover the cost of hiring lawyers to defend the company or the cost of settling the claims. If a business has frequent claims against its CGL insurance, the insurer might raise the premium costs of the policy.

Commercial general liability insurance covers injuries to a person or property damage that occurs on the premises of a business. This type of policy can also protect a business from claims of slander, libel, or advertising injury.

Most CGL policies do not cover intentional or expected damage by the insured. They also do not cover damages due to intoxication (in alcohol-related businesses), pollution, automobiles or other vehicles, damage to a business’ work, or additional liabilities that the insured might take on. A business that is involved in these types of risks should purchase additional insurance to be fully covered.
This coverage will help you pay attorney fees or settlement costs in the event of a lawsuit. And you can augment your coverage with extensions that cover errors and omissions, excess liability, or employment practices liability.

 Commercial property insurance is used to cover any commercial property. Commercial property insurance protects commercial property from such perils as fire, theft, and natural disaster. A variety of businesses, including manufacturers, retailers, service-oriented businesses, and not-for-profit organizations carry commercial property insurance. It is generally bundled together with other forms of insurance, such as commercial general liability insurance.

• Commercial property insurance is insurance used to cover property and equipment from the risk of disasters.
• Different types of properties and equipment are considered for commercial property insurance.
• Several factors, such as location and occupancy, are considered while determining the cost of commercial property insurance.

Understanding Commercial Property Insurance 
Commercial property insurance can be a major expense for businesses that use equipment worth millions or billions of dollars, such as railroads and manufacturers. This insurance essentially provides the same kind of protection as property insurance for consumers. However, businesses can usually deduct the cost of commercial property insurance premiums as expenses. Commercial property insurance generally does not cover losses arising from tenants using the building.
When determining how much a company should pay for commercial property insurance, the value of a business’ assets, including the building, is the primary factor. Before meeting with an agent to discuss coverage, a company should take an inventory of their physical assets located at their property. This information will help determine what exactly would be the replacement value and the level of coverage the business should get.
With an increase in the number of natural disasters, weather conditions in the area where the building is located have also become an important factor in determining the cost of commercial property insurance. Commercial insurance rates are generally higher for properties located in the vicinity or inside geographies with significant risk of weather-related catastrophes. For example, rates are higher for properties located near regions prone to wildfires in California.

Factors Considered in a Commercial Property Insurance 

• Location: Buildings in cities or towns with excellent fire protection typically cost less to insure than buildings outside a city or in areas with limited fire protection.
• Construction: Buildings made of potentially combustible materials will have higher premiums, while those made of fire-resistant materials could earn a discount. Additions to an existing structure might affect a fire rating, so it’s a good idea to talk to an agent or insurance company before remodeling. Internal structural elements can also change a fire rating. Using wood partitions, floors, and stairways in an otherwise fire-resistant building will likely nullify any rate reduction. Fire-resistant interior walls, floors, and doors can help maintain a good fire rating.
• Occupancy: A building’s use also affects its fire rating. An office building will likely rate better than a restaurant or auto repair shop. In a building with multiple tenants, one hazardous occupant will negatively affect the fire rating of the entire building. If a business is in a building with a more hazardous tenant, premiums will be higher.
• Fire and theft protection: How far are the nearest fire hydrant and fire station? Does the business have a fire alarm and sprinkler system? How about a security system?

Property to Consider for Commercial Property Insurance 
Some places on your property to consider insuring include:

• The building that houses your business, including if it is owned or rented.
• All office equipment, including computers, phone systems, and furniture, whether they’re owned or leased.
• Accounting records and essential company documents.
• Manufacturing or processing equipment.
• Inventory kept in stock.
• Fence and landscaping.
• Signs and satellite dishes.

Employment Practices Liability Insurance (EPLI) covers a business’s legal costs when an employee files a lawsuit. This can include expenses related to lawsuits in which an employee sues for discrimination, harassment, or wrongful termination.
Key Takeaways

• Employment practices liability insurance (EPLI) protects businesses from incurring the costs of lawsuits filed by employees.
• EPLI protects from lawsuits related to issues including discrimination, harassment, and wrongful termination.
• EPLI covers litigation costs, including lawyer’s fees and settlement money.
• Directors and officers (D&O) liability insurance, in contrast to EPLI, protects individuals.

Employment practices liability insurance (EPLI) is designed to protect business owners from lawsuits filed by employees by providing coverage for defense and damages.
If you’re a small business owner, you may not have the funds to handle costly litigation. In this case, you can purchase EPLI so that you don’t face financial hardship if an employee sues the company. EPLI covers expenses such as lawyer’s fees, settlement money, and administrative expenses. However, it does not cover criminal fines, bodily injury or property damage claims, or wage-theft compensation.

Example Scenarios When EPLI Provides Protection 
EPLI covers a broad range of lawsuits filed by employees. Here are some examples of situations when your business would likely be protected by an EPLI policy:

• An employee files a sexual harassment case.
• A gig worker or a freelancer claims they are being discriminated against.
• An ex-employee believes they have been fired for the wrong reasons.

Choosing the right business insurance is important because you don’t want to leave certain aspects of your business unprotected or overpay for coverage. Asking the right questions can help you better evaluate your needs.
Some of the most important questions to answer include:

• How many employees does the business have?
• Does the business have a physical location, or does it operate online only?
• Is there any business equipment that will need to be insured?
• What types of liability risks does the business face?
• Are there any vehicles that will need to be covered?
• What would happen if the business were interrupted by a natural disaster or another situation that’s beyond my control?