Businesses face unexpected risks, but general liability insurance protects the business owner from financial losses resulting from injuries to customers on their property or damage to his property team on the other. “Commercial” means the coverage is for businesses, while “liability” means incidents for which the business owner or his employees may be responsible, either directly or for neglecting to provide a safe environment. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay General liability insurance covers the business owner for actions brought by the injured party. While there are numerous exclusions to coverage, in general CGL will pay for damages caused to a person due to negligence, an accident, or a mistake that harms a customer, customer, or even a bystander. Additionally, property damage caused by the business owner or his employees may be covered. Commercial general liability policy limits have limits. The policy offers a per-occurrence limit, as well as a lifetime limit. If the business owner makes a claim for damage to a customer's car when a worker backs a truck into it, that counts as one event and the payout should limit the life of the policy. the list of excluded damages exclusions can be much longer than the list of covered damages. If the business owner suffers damage to his equipment, building or inventory, the CGL policy may not cover the costs. It also will not pay the doctors of an employee injured at work if the owner does not have sufficient work accident insurance. Furthermore, the policy cannot cover the owner for economic damage resulting from accusations of slander or harassment. Since policies vary from insurer to insurer, the business owner must carefully compare exclusions. The cost of a commercial general liability policy depends on the amount of protection the business owner requires and the number of employees who have it. For a small company with one or two workers and not for recent claims, the rate might be a few hundred dollars, while a large construction company with many workers might pay tens of thousands of dollars each year for coverage. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Considerations and other insurance policies, business owners can shop around to get the best rates. Because general liability insurance only covers a narrow range of claims, the business owner must purchase additional insurance to cover damage to their business, vehicles, inventory, and employees.