Comprehensive General Liability Policy

What Does Comprehensive General Liability Policy Mean?

A comprehensive general liability (CGL) policy is an insurance policy typically purchased by companies to cover various types of liabilities. It protects businesses from financial damages resulting from lawsuits if they are found liable for a loss. Today, most insurers sell this product under the shorter name general liability insurance, though the older “comprehensive” label still appears in some policy documents.

CGL policies can provide coverage for a range of risks, including product liability, injuries occurring on company premises, and operational liabilities.

Insuranceopedia Explains Comprehensive General Liability Policy

Companies generally strive to ensure the safety of their products and premises, but accidents can still occur. Without a comprehensive general liability (CGL) policy or similar insurance, the financial burden of such liabilities could potentially bankrupt a company. CGL policies provide protection against this risk. For companies whose risk exposure may exceed standard CGL limits, adding commercial umbrella insurance raises the total amount of liability coverage available.

However, these policies typically do not cover vehicle liabilities. To obtain vehicle liability coverage, companies must purchase specific auto insurance policies from an auto insurance provider. That separate policy is known as commercial auto insurance.