Michigan General Liability Insurance 

Index

In the world of business, risk is an inevitable part of the journey. Whether you own a small startup or a large corporation in Michigan, Commercial General Liability Insurance is an essential safeguard that protects your business from potential financial catastrophes. This type of insurance covers a broad spectrum of scenarios, from bodily injuries to property damage, that could otherwise drain your business financially.

Commercial General Liability (CGL) Insurance is a policy that provides coverage to a business for bodily injury, personal injury, and property damage caused by the business's operations, products, or injury that occurs on the business's premises. In the event of a lawsuit or liability claim, without this coverage, business owners may need to pay out-of-pocket for costly damages and legal fees, which could be financially devastating.

For businesses in Michigan, this insurance is not mandated by law, but it can be a requirement in contracts with clients or landlords. The cost of CGL insurance in Michigan varies depending on several factors such as the size of your business, the industry you're in, and the amount of risk associated with your business operations.

Commercial General Liability Insurance is designed to cover the financial costs associated with liability claims and lawsuits. The policy typically covers three main areas: bodily injury and property damage, personal and advertising injury, and medical payments.

Bodily Injury and Property Damage

If your business is found legally responsible for causing harm to a person or damaging property, your CGL policy can cover the associated costs. This includes the legal defense fees, court costs, and any settlements or judgments that you are required to pay.

For example, if a customer slips and falls at your business premises and decides to sue, your CGL policy would cover the costs associated with the lawsuit and any medical bills for the injured party.

Personal and Advertising Injury

This part of the CGL policy covers offenses made by your business in the course of advertising. This includes libel, slander, copyright infringement, invasion of privacy, and more. If your business is sued over an advertisement, this coverage can help pay for your legal defense and any resulting judgments against you.

For instance, if your business uses a photograph in an advertisement without the proper permissions and the photographer sues for copyright infringement, your CGL policy would cover the associated costs.

Medical Payments

This coverage can pay for immediate medical expenses related to an injury that occurs on your business premises, regardless of who is at fault. It’s important to note that this coverage is typically limited and is not a substitute for workers' compensation insurance.

For example, if a visitor gets injured at your business location, this coverage can pay for their immediate medical expenses such as first aid, ambulance fees, and hospital visits.

While CGL insurance provides broad coverage, it doesn’t cover everything. Some of the exclusions include:

Professional Errors

Professional errors, omissions, or negligence are not covered under a CGL policy. For these types of risks, professional liability insurance, also known as errors and omissions insurance, is needed.

Employee Injuries

CGL insurance does not cover injuries to your employees. This is covered under workers' compensation insurance.

Intentional Acts

Any damage or injury caused intentionally by the business or its employees is not covered under a CGL policy.