Protect Your Business with General Liability

Zeyger Insurance represents a wide range of General Liability Insurance companies in California, and can help pair your business type with the best possible provider and pricing.

Are you a business owner in California looking for General Liability Insurance?

Our agency has you covered. It only takes one claim to financially cripple your business, so it’s important that you have adequate coverage from a highly rated carrier.

At it’s core, General Liability Insurance (a.k.a. CGL for Commercial General Liability) is the most basic form of commercial liability coverage. If you own a business, having General Liability coverage is not optional — it’s mandatory.

Business Property Insurance
Small business owner with commercial property insurance in California

What does General Liability Insurance Cover?

Business is inherently risky, but General Liability insurance protects against many known and unknown risks.

Simply put, CGL guards you, your business, and your employees from claims involving bodily injury or property damage born out of your business operations. These policies cover the expense of out-of-court settlements, litigation and judgments awarded by courts. Often times CGL is paired with BPP (Business Personal Property) coverage in a BOP (Business Owners Policy).

Here are a few things you can expect General Liability Insurance to cover:

  • Lawsuits, investigations, and settlements
  • Injury damages
  • Advertising/Copyright claims

What’s involved with getting Commercial General Liability Insurance?

With any type of insurance there are certain underwriting and eligibility questions that must be answered in order for the insurance company to determine what the final rating will be. Zeyger Insurance will guide you through the process and make it easy. Many times companies will require you to show them a certificate of insurance before you can do work for them.

This proves to them that you have active insurance coverage, which is typically a requirement if you’re running a business in most states. If you’re confused by any of this don’t worry, we’ll make the process easy. Click below and we can help you get the process started when you’re ready.

Commercial General Liability Insurance FAQ

As a business owner, you juggle many things every day: Product development, marketing, sales, payroll, etc the list is endless. But amidst this whirlwind of tasks, there’s one critical safeguard that often gets overlooked until it’s too late: Commercial General Liability (CGL) insurance. Think of it as your business’s financial bodyguard, ready to step in when the unexpected happens. Imagine a customer slipping on a wet floor in your retail store and having an injury, or a faulty installation by your team causing significant damage to a client’s property. Without CGL insurance, these seemingly random events could trigger lawsuits that can drain your company’s resources and threaten its very existence. This isn’t just about covering accidents; it’s about peace of mind. It allows you to innovate, grow, and serve your customers without the constant fear that one unforeseen incident could derail everything. In this comprehensive guide, we’ll demystify CGL insurance, ensuring that you understand its vital role and how to leverage it effectively to protect your hard-earned enterprise.

Commercial General Liability (CGL) insurance is a foundational policy that protects businesses from financial losses due to claims of bodily injury, property damage, personal injury, and advertising injury to third parties. It acts as a shield against the costs associated with lawsuits and settlements that can arise from your business operations. This critical coverage ensures that your company remains financially stable in the face of unforeseen incidents. Without it, even a minor accident could lead to catastrophic financial consequences for your business.

Real Results: A small design firm faced a $75,000 lawsuit when a visitor tripped over its office rug and sustained a minor concussion. The firm’s CGL policy covered all legal fees and the eventual settlement.

Takeaway: CGL insurance is your business’s primary defense against third-party claims for injury or damage.

CGL insurance is essential because it safeguards your business from potentially devastating financial liabilities that can arise from everyday operations. A single lawsuit, whether legitimate or frivolous, can incur exorbitant legal fees, medical costs, and settlement amounts that could bankrupt a business. It provides peace of mind, allowing you to focus on business growth without constant worry over unexpected incidents. Furthermore, many clients and landlords require proof of CGL coverage before entering into contracts or leases.

Real Results: An event planning company landed a major contract with a convention center only after providing proof of a $1 million CGL policy, a standard requirement for large venues.

Takeaway: CGL protects your assets from costly lawsuits, and it is often a prerequisite for business contracts and leases.

CGL primarily covers third-party bodily injury, property damage, personal injury, and advertising injury from your business operations or premises. It differs significantly from policies like Professional Liability (E&O), which covers claims of negligence related to professional services, or Workers’ Compensation, which covers employee injuries. While CGL addresses external risks, Commercial Property insurance protects your business’s physical assets from damage. Understanding these distinctions is crucial for your business’s comprehensive protection.

Real Results: A consulting firm obtained CGL coverage for risks related to client visits and E&O coverage for lawsuits arising from its professional services. It used its CGL insurance for a client who slipped in its office and sustained injuries. Meanwhile, its E&O insurance protected it from a lawsuit filed by one client due to ineffective advice that caused her financial loss.

Takeaway: CGL focuses on general operational risks, which are distinct from professional errors or employee-specific injuries.

While no federal law mandates CGL for all businesses, many industries, clients, landlords, and lenders often require it. Businesses that operate in public spaces, handle client property, or have significant foot traffic (e.g., retail, restaurants, and contractors) almost invariably need CGL depending on the business’s risk profile. Many state and local licensing boards, particularly for contractors, also make CGL a mandatory requirement, although this depends heavily on the state and industry. Failing to carry it can result in the loss of contracts, legal penalties, or severe financial exposure.

Real Results: A general contractor couldn’t bid on city projects until it secured a CGL policy with specific coverage limits mandated by municipal regulations. This impacted its revenue.

Takeaway: Many contracts, landlords, and regulatory bodies will legally require you to hold CGL insurance.

CGL insurance typically covers claims arising from bodily injury, property damage, personal injury, and advertising injury caused to third parties. Bodily injury claims often involve medical expenses, which may also include compensation for lost wages and pain and suffering, depending on liability laws and policy terms. Property damage covers repairs or replacement of another’s property that was damaged by your business. Personal injury addresses non-physical harm like slander or wrongful eviction. Meanwhile, advertising injury includes issues such as copyright infringement in your advertisements.

Real Results: A landscaping company’s CGL covered the $15,000 cost to repair a client’s sprinkler system that was accidentally severed during a lawn care job. This prevented an out-of-pocket expense for the company.

Takeaway: CGL broadly protects against injuries, property damage, and reputational harms caused to external parties.