Comprehensive General Liability [CGL] Insurance

This insurance will pay damages that the insured becomes legally obligated to pay by reason of liability imposed by law for bodily injury or property damage caused by an occurrence to which this coverage applies.

CGL Policy would cover a wide range of liability loss exposures of commercial organizations. The loss exposures come under following broad categories:

1. Premises and Operation Liability Risks [corresponds to ‘Public Liability’ Insurance policy]

Public Liability Insurance (Industrial Risk) insurance will cover the Insured’s legal liability, caused by negligence of the  Insured or his Employees, for paying Compensation to a Third Party due to Accidental Death, Bodily Injury or Damage to Property.

2. Products and completed operations Liability Risks[corresponds to ‘Product Liability’ Insurance policy]

The Products Liability Insurance applies to claims for injury or damage arising out of accidents attributable to defects in the product. It confines itself to compensation becoming due on account of death, bodily injury, disease or property damage arising out of the use of a defective insured product.

3. Personal and Advertising injury liability 

Examples of Personal injury:

l False arrest, detention or imprisonment;

l Malicious prosecution;

l The wrongful eviction or wrongful entry

l Defamation libel or Slander/ Product Disparagement

l Oral/ written publication damaging person’s privacy

Examples of Advertising injury:

l Use of another’s advertising idea in advertisement

l Infringing on other’s copyright, trade mark or slogan

l Oral/ written publication of material that violates a person’s right of privacy

4. Medical payments 

l Medical expenses payable for bodily injury caused by an accident:

– On premises owned or rented;

– On ways next to premises owned or rented;

– Because of operations;

Provided that –

(a) The accident in the coverage territory and during the policy period.

(b) The expenses incurred and reported within 30 days of the date of accident.

(c) Submission for examination by physician as often as reasonably required.

This Medical Payments coverage is not liability insurance in true sense, because the insured pay regardless of whether the insured is legally liable for that. This coverage is included in CGL Policy to give relief to the insured by providing a small amount of compensation for settling minor injury cases without having regard to his actual liability of the insured. This is viewed as a means of making prompt settlement to the potential liability claimant in order to avoid possibly larger liability in future.

The origins of liability in CGL Policy are i) Common Law, ii) Contract and iii) Statute.

Common forms of Torts that are covered in CGL Policy are as usual Negligence, Nuisance, Trespass, Strict Liability, Libel and Slander, Liability for occupier’s premises

Common Exclusions to CGL Cover

Following Exclusions define the scope of CGL Policy for bodily injury or property damages.

1. Expected or Intended Injury
2. Contractual Liability
3. Liquor Liability
4. Workmen Compensation and similar laws
5. Employers’ Liability
6. Pollution Liability
7. Aircraft, Auto or Watercraft
8. Mobile Equipment
9. War Warlike action or Insurrection, Rebellion
10. Damage to owned/ rented/ occupied property
11. Damaged own product
12. Damage to own work
13. Damage to Impaired Property or Property not physically Injured
14. Recall of Products, Work or Impaired Property
15. Electronic Data

On payment of extra premium, some of the above-mentioned Exclusions to CGL cover can be got deleted