A Commercial General Liability (CGL) insurance policy provides a unique cover designed to protect the financial interest of the companies against the Product Liability and Public Liability claims. This is a very important policy for all companies which are in to manufacturing or software products for its business & retail clients. Commercial General Liability (CGL) policy covers third party liabilities arising from various business operations, be it premises, products and completed operations, advertising and personal injury, or even supplementary payments. This Policy is ideal for Indian companies who have global operations or have contracts with international partners/associates & foreign companies operating in India.
Scope of Cover
Section A – Cover for Bodily Injury and Property Damage arising out of premises operation or products/ completed operations
Section B – Personal and Advertising Injury Liability to a third party resulting from an offence committed during the course of business. This includes False arrest, detention or imprisonment, malicious prosecution; the wrongful eviction or wrongful entry. Defamation libel or Slander including Product Disparagement, Oral or written publication that violates person's right of privacy. Use of another's advertising idea in your advertisement; or infringing upon another's copyright, trade dress or slogan in your advertisement
Section C – Medical Payments of injured third parties, regardless of fault.
Section D – Fire Damage to the premises rented to you or temporarily occupied by you with the permission of the owner.
Section E - Product & Completed Operations Coverage :Products Completed Operations includes claims made on account of bodily injury and property damage occurring away from premises the Insured owns or rents and arising out of the Insured's product or the Insured's work except Products that are still in the Insured's physical possession or Work that has not yet been completed or abandoned.
Geographical coverage and jurisdiction can be worldwide.
Additional insured can be granted cover under the same policy.
Supplementary Payments in respect of covers under A&B include expenses incurred in defending the case, cost of bail bonds (accidents or traffic law violations), cost of bond to release attachments and interest on full judgment.
Subsidiary companies could be covered under single policy
Act of God Perils Extension.
Sudden and Accidental Pollution Extension - Indemnifies against injuries or damage occurring due to pollution caused in a brief period, due to business operations.
Transportation Liability Extension- Covers liability arising out of transportation of hazardous materials or substances.
Unnamed Vendors Endorsement - Extends the policy coverage to specific vendors and indemnifies them against legal liabilities arising out of accident for usage of the insured's products.
Unnamed Technical Collaborators Endorsement- Indemnifies against liability arising out of accidents occurring due to the defects in the designs or processes supplied by the technical collaborators.
Batch Clause - Provides coverage against accidents due to defective products, from a specific production cycle, over a specific period, referred to as a 'batch'
Depend on many factors which include:
AOA : AOY limit, additional covers opted.
Nature of Business includes export, IT, services, construction.
Clients: are clients based out of India or abroad particularly Europe, US
No’s of employees
Error or Omission
Company’s own product damage
Recall of Products, works or impaired property and Product guarantees.