General liability (CGL)
Commercial coverage for many third-party bodily injury and property damage claims.
Plain definition
Commercial general liability (CGL) helps pay covered damages and defense costs when your business is legally responsible for injuring someone or damaging their property. Policies are usually occurrence-based or claims-made and include exclusions for professional errors, intentional acts, and other risks addressed by separate lines.
Why it matters
One slip-and-fall at your shop or a damaged client wall on a job can trigger lawsuits that exceed personal savings. CGL is the baseline many contracts require before you work on site.
Example
A customer trips over equipment in your store and breaks a wrist. CGL may pay covered medical and liability damages and legal defense up to policy limits.
Common misunderstanding
General liability does not cover every business loss—employee injuries (workers’ comp), your own property, and professional mistakes typically need other policies.
Policy language always controls. This is educational content, not advice. See our disclaimer.