Unfortunately, it is not uncommon for a specific type of insurance coverage or policy to be referred to by a number of synonymous names. One area of insurance in NY where this is particularly prevalent is in the area of liability insurance.
Commercial insurance brokers in NY are often asked such such questions as: “what is commercial general liability insurance?” It is first helpful to know that this type of coverage is also referred to as general liability, business liability, commercial general liability, CGL, and even just liability insurance.
Though technically some of these terms are quite general and can even apply to such insurance sectors as car insurance, it's helpful to realize that many will use these terms interchangeably.
Though technically some of these terms are quite general and can even apply to such insurance sectors as car insurance, it's helpful to realize that many will use these terms interchangeably.
A quick NY general liability insurance overview may be useful to further clarify some of these terms.
In New York, general liability insurance most typically refers to coverage that protects you from damages due to activities that result in personal injury, bodily injury, property damage, and or damages due to slander or false advertising (also referred to as advertising injury). Your insurance company is responsible to cover the legal costs to defend the claim as well as any compensatory or general damages. Specifically not covered are damages resulting from intentional acts. Automobile liability, employers’ liability, and professional liability insurance are not typically referred to as general liability insurance. Though many will define general liability insurance in much more specific detail, most will include these same fundamental features.
In New York, general liability insurance most typically refers to coverage that protects you from damages due to activities that result in personal injury, bodily injury, property damage, and or damages due to slander or false advertising (also referred to as advertising injury). Your insurance company is responsible to cover the legal costs to defend the claim as well as any compensatory or general damages. Specifically not covered are damages resulting from intentional acts. Automobile liability, employers’ liability, and professional liability insurance are not typically referred to as general liability insurance. Though many will define general liability insurance in much more specific detail, most will include these same fundamental features.
Business or commercial insurance is a broader term that includes general liability insurance as well as other types of coverage that are typically required to fully protect yourself from potential claims resulting from business activities.
Types of Business Liability Insurance
Types of Business Liability Insurance
- General Liability Insurance: This form of business liability insurance is the main coverage to protect your business from: injury claims, property damages, and advertising claims. In some cases it may be the only type of liability insurance that is necessary to protect a business.
- Professional Liability Insurance: This type of coverage is generally needed when a business offers a service. For example insurance agents, accountants, attorneys, doctors and real estate agents. This protects your business from damages resulting from negligence, malpractice, or errors and omissions. Other names for professional liability insurance are errors and omissions insurance (E&O) or malpractice insurance. Oftentimes the label will depend on the industry. For example it is referred to most frequently as malpractice insurance in the medical professions, professional liability insurance in the accounting and financial consulting fields, and and errors and omissions insurance in the insurance sector
- Product Liability Insurance: Businesses that manufacture products need to be protected from injuries that resulting from individuals who are injured using their product. Rates for this type of insurance are highly variable and depend on the nature of the product involved. Food products often need to be covered by product liability insurance.
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