Liability insurance is designed to protect the business against losses in the event that they are found to be negligent or liable for property damage or bodily injury to third parties. Typically, damages, legal defense fees, and settlement charges are paid by the insuring company when a claim is filed against the business.

Included in the liability policy:

 

• Products/Completed Operations

• Medical Payments

• Personal and Advertising Injury

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Commercial general liability insurance is a standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability. The CGL policy was introduced in 1986 and replaced the "comprehensive" general liability policy.