Your business’s liability insurance is one of the backbones of your company’s risk management plan. You’ll want to design a policy that will make your company as secure as possible.
Most businesses start their liability insurance portfolio with commercial general liability (CGL) insurance. It will contain the coverage that most operations in all industries need. However, a CGL plan often needs several augmentations to make it more effective. You can get this added coverage through numerous policy endorsements. Let’s take a closer look at these extra benefits.
What does a CGL plan cover?
If you make mistakes in your business, even unintentional ones, then you might have to repay others who were negatively affected by them. General liability insurance is the plan that helps you do so. CGL plans usually cover third-party:
- Bodily Injuries
- Property Damage
- Personal Injuries
- Products/Completed Operations Injuries
However, there are many other liabilities in any business, which is why you will need other coverage specifically for those risks. In many cases, you can get these benefits through endorsements that you add directly to your CGL policy. Some of the most common to add to your plan include:
Errors & Omissions (E&O) Insurance
E&O insurance applies to the professional services you provide and the advice you give. These mistakes could cause clients harm or a monetary loss. As a result, they might expect restitution. For example, if you are a CPA who makes a mistake on a client’s taxes, then they could sue you if this mistake gets them into trouble with the IRS. E&O coverage can pay for the necessary settlements.
Cyber Liability Insurance
Most businesses store very sensitive data, including customer information, on their computer systems. No matter how strong your security system, a hack, virus or ransomware attack might occur. Cyber liability insurance will help you get control of the situation, notify and help customers, and pay the costs necessary to re-secure the business.
Employment Practices Liability Insurance (EPLI)
Your interactions with prospective, current and former employees must always be above-board. However, someone might still allege misconduct like discrimination, harassment or failure to promote even if this did not occur. An EPLI policy can help you both fight this claim and settle the costs.
Hired/Non-Owned Auto Liability Insurance
Your business might not own a commercial vehicle. However, employees might often drive their own cars on official business. If they have an at-fault accident, then the business might also be the victim of a lawsuit from the person they harmed. Hired/non-owned liability coverage helps you pay for these third-party injuries or property damage.
There are many other liability benefits, some of which you might not be able to add as endorsements to your CGL policy. However, with help from your agent, you can seamlessly fold these benefits into your full business insurance portfolio.
Also Read: Does General Liability Cover Food Poisoning?