A frightening thing about the relationship most companies have with insurance is the natural assumption that it is all-encompassing when it comes to coverage. When a business owner hears the term commercial general liability insurance, they think their business is covered in the event of any accident. This is because many people take the word “general” and substitute “total” or “complete” – and that can be dangerous. While this type of insurancedoes cover many business events, it is important to understand the things it does not cover.

Following are three myths about commercial general liability insurancethat could be costly mistakes.

Myth Number One – Professional Services

Myth number one is that commercial general liability insuranceincludes coverage for financial losses due to professional mistakes. CGL insurance covers property damage, bodily injury, and injury or damage caused by your products off-premises; however, if there is a claim due to a professional service error, it would not be covered. Professional liability insurance is what is necessary to protect against any error or omission claims against a business.

Myth Number Two – Sub-Contractor Professional Services

Myth number two is that sub-contractors can be added to commercial general liability insuranceand their services will be covered. As in myth number one, professional services – whether yours or a sub-contractors – are not covered under this CGL insurance. It is important that sub-contractors obtain their own insurance, including professional liability insurance, to protect their business against liability claims.

Myth Number Three – Cyber Theft

Myth number three involves a topic that is all too familiar – theft due to a data breach. Commercial general liability insurance does not cover losses due to cyber theft or a data breach that result in losses involving remediation and notification expenses, business interruption, or defense expenses. There is an insurance policy specifically designed to protect against such a loss called cyber liability insurance. Even small businesses have employees that travel with documents, laptops, etc., containing confidential business information. If those items are stolen or compromised, it could cost a company a great deal of money.

While commercial general liability insuranceis a must for every business, it is important to know its limits and find the right insurance products for a company to better prepare for potential losses. At Jones & Associates, we know how to support your business and make sure you are covered and prepared for whatever may come your way. Let us take care of your insurance needs -so you can take care of your business!

Need Commercial General Liability Insurance in Bryan or College Station?

Jones & Associates Knows Commercial General Liability Insurance!

Call (979) 776-4740 – Today!

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