What is CGL? The Commercial General Liability (CGL) policy is a tool for Indian companies for Risk Management. It helps companies preserve their working capital by transferring their risks arising from the unquantifiable liability of third-party lawsuits. It is a type of Liability Insurance policy that acts both as an insurance policy and a legal contract. How Does a CGL Policy Protect Your Business? This policy provides three types of coverage for damages caused to a third party by an Indian business. This policy takes away the financial risk for both physical and non-physical damage a company may cause. It also holds provisions for mitigating future lawsuits by taking care of any medical expenses the victim may have to seek. Bodily Injury & Property Damage Coverage When a company is sued on the grounds of any physical harm done to any person or property outside the company, caused by business activities of that company or at the company’s premises, then this provision allows the company’s insurance provider to pay for the damages. The damage can be in the form of physical harm to a third party, physical damage caused to property of a third party, or if any product or component manufactured, sold, or installed by that company causes harm to a third party. Policy Trigger: This gets activated on a Fault basis. That means the coverage claim is paid out only after proven occurrence of negligence by the company. Personal & Advertising Injury Coverage If a company is sued because of reputational damages caused to any third party through their social media activity, public communications, or press releases from the company executives, then the damages are paid by the insurance company. The non-physical damage can be in the form of publishing inaccurate information, slander, copyright infringement, or privacy violations of a third-party company. In contrast, to safeguard against data theft, ransomware, business interruption from an attack, or phishing losses, Cybersecurity Insurance is more applicable to the company. It covers a fundamentally different risk: being hacked or breached. Policy Trigger: This coverage is activated on a Fault basis, only after an offense by the company has been proved. Medical Bills Coverage: A Diplomatic Public Relations Tool