Commercial general liability insurance and public liability insurance are very different from each other. If you are not familiar with the terms, you may end up believing that they are one and the same. While the former insurance policy takes into account and covers a wide variety of legal issues, the latter safeguards you and your business from financial losses. Here are a few elements of these two insurance plans and the pros and cons of each.
What is Commercial General and Public Liability Insurance?
The general liability plan usually has your back during litigation procedures arising from factors such as claims of negligence, accidents, and injuries. This cover makes a compensation for property damage, bodily injury, libel, medical expenses, and settling fees that arise due to defending lawsuits. Public liability cover, on the other hand, helps cover financial losses that are caused by your business premises. These losses can occur owing to negligence which leads to injuries to the general public.
Benefits Offered by Commercial General Liability Insurance
CGL insurance is an all-encompassing insurance plan. This is because it takes into account all the requirements as well as essentials and works to safeguard assets of a particular company in case of any unforeseen, disastrous incident. This includes incidents involving bodily injury, product liability, loss, and personal injury. It also includes intellectual property infringement.
Benefits Offered by Public Liability Insurance
PLI insurance is a typical form of liability insurance for every business that deals with members of the public. It especially takes into consideration retailers. This type of insurance is like the minimum coverage required in an auto liability insurance since it covers any damage or injury claim filed by a customer in your store. It comes with affordable premiums and helps your business function seamlessly without having to worry about finances in case a vendor, customer, or third-party files a claim.
The Downside of Commercial General Liability Insurance
When you compare this insurance to public liability insurance, you may find that the premiums are more expensive in nature. This makes it difficult for SMEs and emerging startups as well as businesses to afford this kind of insurance. In addition to this, the insurance does not comprise professional liability insurance and worker’s compensation.
The Downside of Public Liability Insurance
This kind of insurance only safeguards your liability in the face of public claims. This means that you are still unprotected against claims made by investors, employees, vendors and even yourself. You can get coverage for these claims only when you buy an additional insurance coverage policy. You are also accountable for any kind of expenses that go above and beyond your policy limits.
There are positives and negatives to each of the above-mentioned insurance plans. The battle between these two insurance policies ends with which one you favor the most. When choosing whether to go in for a CGL policy or PLI policy, it is imperative that you understand and measure all aspects before signing up for one. Compare the features online and you will be better equipped to make a sound choice.
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