| Your business
should start with a general liability policy.
Your premises and other areas your business is
responsible for are protected by this. Perhaps
your business also needs an auto policy and even
several other liability insurance policies.
Tip. Make sure you use an experienced commercial
insurance agent when reviewing your different
liability exposures. Without the proper protection,
you're risking your business and possibly your
personal assets.
The Commercial General Liability Policy (CGL)
is written on two distinctly different forms.
Depending on your type of business, you might
only have one option so it's important to understand
the difference between the two.
Two CGLs are available:
1. An Occurrence policy. (the
most common) A claim is paid if it happens during
the policy period.
2. A Claims Made policy. A
claim is paid if made during the policy year,
and the claim had to occur on or after the retroactive
date.
This can create problems when you switch between
the two types of forms. In addition to these
different CGL forms, there are coverage forms
A, B, and C.
Other tools can also fit a CGL to various business
situations. Among these are pollution and employment-related
matters.
|
