Liability · Insurance Term
Commercial General Liability (CGL)
Definition
Commercial general liability (CGL) insurance protects your business when others say you hurt someone or damaged their property. It also covers some personal and advertising injury claims. It typically pays for your legal defense and the damages you owe, up to the policy limits.
In Plain English
The standard form is ISO's CG 00 01 Commercial General Liability Coverage Form (occurrence). It covers bodily injury, property damage, personal and advertising injury, and medical payments. It is usually an occurrence policy, which covers events that happen during the policy period.
For property owners, the biggest risk is premises liability. Think slip-and-fall claims, injuries from poor upkeep and some security claims. Limits usually include an each occurrence limit and an aggregate.
CGL policies have key exclusions. These include injury you expected or intended, employee injuries, autos, pollution and professional services. Many policies add exclusions for assault and battery, habitability or other property risks.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a visitor slips on a wet floor in an office lobby and sues the owner for $250,000. The CGL policy would typically defend the owner and pay damages the owner is legally liable for, subject to the limits and terms.
What to Watch For
- Check limits per occurrence and per location.
- Review exclusions added by endorsement, especially for your property type.
- Ask tenants and contractors to name you as an additional insured.
- Report incidents and suits right away.
Common Questions
Does general liability cover damage to my own building?
No. Damage to your own property is covered by property insurance. General liability covers claims by others.
Do I need general liability if my tenant has it?
Most owners carry their own. You can still be sued as the owner, and the tenant's policy may cover you only partly, or not at all.
Last updated October 14, 2026 · Primesure editorial team · How We Write