Liability insurance protects an individual or business from the risk that they may be sued and held legally liable for something such as injury or negligence. They generally cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.
Commercial general liability, or CGL, is considered comprehensive business insurance, though it does not cover all risks that a business may face. It is a type of insurance policy that provides coverage to a business for bodily injury, personal injury, and property damage caused by the business’ operations, products, or injury that occurs on the business’ premises.
- a client gets food poisoning
- someone breaks a tooth when biting into food that you prepared
- you drop a pan and crack a tile on your client's floor
- you damage equipment in the commercial kitchen you have rented
Yes. Personal liability on your home would not cover such situations. Liability is perhaps the greatest risk with a home-based business. What if you are sued because of problems with a product or service you provided? Having the right insurance coverage helps to provide peace of mind.