Commercial General Liability
Commercial General Liability (CGL) Insurance covers your business when a third party, a customer, visitor or member of the public, holds you legally responsible for bodily injury or damage to their property. It pays the compensation you become liable for along with legal defence costs, whether the incident happens at your premises, during your operations or because of a product you sold. Many large Indian companies and MNCs require their vendors to carry CGL cover.
What it is
A CGL policy combines the main third-party exposures of a business into one cover: premises and operations liability for incidents like a customer slipping at your outlet or your staff damaging property at a client site, and product liability for injury or damage caused by goods you manufacture or sell. Completed operations cover extends this to work that has been finished and handed over.
The policy responds to your legal liability, paying defence costs, lawyer fees and the damages a court awards or a covered settlement, subject to per-occurrence and aggregate limits chosen at purchase. In India, CGL has become standard for businesses supplying large corporates, since vendor contracts commonly specify minimum liability limits, and for exporters who face product liability claims in overseas jurisdictions where cover can be extended.
Who needs it
CGL cover suits any business whose premises, operations or products touch the public: manufacturers and their supply chains, retailers and showrooms, restaurants and hotels, offices that receive visitors, and contractors whose teams work at client sites. Exporters need it with worldwide extensions because liability claims in markets like the US can be severe. Event organisers, warehouse operators and facility management companies carry obvious premises exposure. Even a services business with modest physical risk often ends up buying CGL simply because a large client's vendor onboarding or master services agreement demands proof of liability insurance.
What's covered
- Legal liability for third-party bodily injury, including accidents at your premises
- Third-party property damage caused by your operations or employees
- Product liability for injury or damage caused by goods you make or sell
- Completed operations liability after work is finished and handed over
- Legal defence costs, lawyer fees and court expenses for covered claims
- Medical expenses for third parties injured on your premises, where included
- Personal and advertising injury such as libel or slander, per policy wording
Typically not covered
- Injuries to your own employees, which belong under Employees' Compensation insurance
- Damage to your own property or to the defective product itself
- Professional errors and negligent advice, which need Professional Indemnity cover
- Deliberate, criminal or fraudulent acts
- Product recall costs and pure financial loss without injury or damage, unless extended
- Liability assumed under contract beyond what the law would impose, subject to wording
Why buy it through Assurmate
One policy for your public-facing risk
Premises, operations and product exposures sit under a single cover, instead of gaps between separate public liability and product liability policies.
Defence costs are carried for you
Even a claim you eventually win can cost heavily in lawyers and court time, and the policy funds that defence for covered claims.
Unlocks corporate and MNC contracts
Vendor agreements with large clients routinely demand proof of CGL with specified limits, so the policy is often the ticket to bigger business.
Extendable for export markets
Worldwide jurisdiction extensions cover claims filed in overseas courts, essential for exporters selling into litigious markets.
Free comparison across 75+ insurance partners
As a trusted insurance advisory we compare CGL wordings, limits and extensions across 75+ insurance partners and explain the differences in plain language.
Support from claim notice to closure
Liability claims move through notices, lawyers and negotiations. Our team helps you notify correctly and stays involved until the claim is resolved.
Optional add-ons
- Worldwide Jurisdiction. Extends cover to claims filed in overseas courts, important for exporters; US and Canada jurisdiction is often subject to special terms.
- Vendor's Liability. Extends protection to distributors and vendors who sell your products, a common requirement in supply agreements.
- Cross Liability. Treats each insured party under the policy as separately insured, useful in joint ventures and multi-party projects.
- Sudden and Accidental Pollution. Covers third-party claims from sudden, unforeseen pollution events, which standard wordings exclude.
How to buy through us
- 1
Share your business details
Tell us your industry, turnover, premises, products and export markets so we can map your liability exposure and the limits you need.
- 2
Compare tailored quotes
We compare CGL terms from 75+ insurance partners, including limits, deductibles, extensions and how each wording treats your specific risks.
- 3
Match cover to your contracts
If clients specify insurance requirements, we help you align limits and endorsements so your policy satisfies the contract.
- 4
Get covered and stay supported
We complete the proposal and issue the policy, provide certificates your clients ask for, and support you through any claim.
Commercial General Liability questions
The things people ask us most about this cover.
Public liability covers third-party injury and property damage arising from your premises and operations. CGL is broader, typically combining that with product liability, completed operations and personal and advertising injury in one policy. Many businesses buy CGL precisely to avoid gaps between separate covers.
No. Employee injuries fall under Employees' Compensation insurance, which covers your statutory liability to workers. CGL responds only to third parties, customers, visitors, neighbours and the public. Most businesses with staff need both policies.
They cover different things. Professional Indemnity responds to financial loss from errors in your advice or services. CGL responds to physical injury and property damage. An IT consultancy might lean on PI, but the moment you have an office, visitors or products, CGL exposure exists.
There is no blanket legal mandate, though units handling hazardous substances have separate obligations under the Public Liability Insurance Act, 1991. In practice, CGL is commercially unavoidable for many businesses because client contracts and vendor onboarding demand it.
The per-occurrence limit is the most the policy pays for any single incident, and the aggregate limit caps total payouts across the policy year. Choosing them depends on your contract requirements, claim scenarios and export exposure, which is where advice helps.
CGL wordings differ on jurisdiction, product cover and exclusions, and the wrong wording surfaces only at claim time. Our IRDAI-certified advisors compare plans across 75+ insurance partners, align cover with your client contracts, and support you fully through claims, at no cost to you.
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