Most businesses carry insurance to protect themselves. Commercial general liability (CGL) insurance covers several common risks and liabilities that the business may encounter. These include property damage and personal injury in addition to others.
There are several types of incidents CGL may cover. If a person is injured on the premises, the policy may cover medical expenses, legal fees and other damages. It may also cover the cost of repairs or replacement of someone else’s property that is damaged by the business.
If a person brings a claim against the business for a non-physical injury, like libel, slander, defamation or a copyright violation, the CGL policy may cover that. It may also protect the business from claims of injuries from defective products. Sometimes, the policyholder may also be entitled to reimbursement for legal fees and court costs.
These are only some examples of coverage, and many policies have specific exclusions.
If a business owner makes a claim under their CGL policy and it is denied, they should receive a denial letter. It’s helpful to review the denial letter and the insurance policy to understand whether the claim is excluded under the policy.
If the business owner has photos, witness statements, contracts, invoices or other evidence to support the claim, it’s helpful to gather those as well. They can support the reasons for the claim, especially if it is appealed through the insurance company’s appeals process.
If the dispute cannot be resolved with the insurance company directly, the business owner may file a complaint with the state insurance regulator or pursue legal action. There is assistance available.