What does the term CGL stand for in insurance?

The term CGL stands for Commercial General Liability. This type of insurance policy provides coverage for businesses against claims of bodily injury, property damage, and personal injury that might occur in the course of normal business operations. It is designed to protect businesses from the numerous risks they face, particularly in industries where they interact with the public or clients, which could lead to potential lawsuits.

Commercial General Liability policies typically include coverage for premises liability, product liability, and advertising injury. This comprehensive coverage is crucial for businesses to safeguard their financial stability and to comply with contractual obligations when entering agreements that may require proof of liability insurance. Understanding CGL is essential for anyone involved in commercial insurance as it plays a significant role in risk management for businesses.