Commercial General Liability Insurance in Texas: Everything You Need to Know

As a business owner in Texas, you’re aware that certain risks are an inherent part of running a business. You can’t always predict when an accident or injury might happen. However, you can protect your business assets and finances by purchasing the right type of insurance policy. Commercial General Liability (CGL) insurance is a must-have for any business, big or small. In this article, we’ll discuss everything you need to know about CGL insurance in Texas.

What is Commercial General Liability Insurance?

Commercial General Liability insurance is a type of policy that provides coverage against claims of bodily injury, property damage, and personal injury. It covers the damages that your business may be liable for, including medical expenses, legal fees, and settlements or judgments. CGL insurance provides protection for a broad range of risks that businesses face every day.

Most CGL policies have two main components:

  1. Bodily injury and property damage liability coverage
  2. Personal and advertising injury liability coverage

Bodily injury and property damage liability coverage

This component of CGL insurance covers claims of physical injuries and property damage caused by your business operations or products. Here are some examples of situations where this type of coverage would apply:

  • A customer gets injured on your business premises
  • You accidentally damage a customer’s property while performing a service
  • Your product causes a customer to get sick or injured

Without this type of coverage, the costs of medical bills, legal fees, and settlements or judgments could be devastating to your business.

Personal and advertising injury liability coverage

This component of CGL insurance covers claims of non-physical injuries, such as defamation or copyright infringement. Here are some examples of situations where this type of coverage would apply:

  • You make a false statement about a competitor in an advertisement
  • You use someone else’s copyrighted material without permission
  • You falsely accuse a former employee of stealing from your business

Personal and advertising injury claims can be just as costly as bodily injury and property damage claims. With this type of coverage, you can protect your business from financial ruin.

Is Commercial General Liability Insurance Required in Texas?

Texas does not require businesses to carry CGL insurance. However, most businesses choose to purchase this type of policy because of the benefits it provides. CGL insurance can help protect your business from the financial consequences of unexpected accidents or incidents. It can also give your clients or customers peace of mind knowing that your business is covered in case something goes wrong.

How Much Does Commercial General Liability Insurance Cost in Texas?

The cost of CGL insurance in Texas varies depending on several factors, including:

  • The type of business you have
  • The size of your business
  • The location of your business
  • The level of risk associated with your business operations
  • The coverage limits and deductibles you choose

On average, small businesses in Texas can expect to pay anywhere from $400 to $1,500 per year for CGL insurance. Larger businesses or those with more exposure to risk may pay more.

What Does Commercial General Liability Insurance Cover?

CGL insurance in Texas typically covers the following:

  • Bodily injury and property damage liability
  • Personal and advertising injury liability
  • Products and completed operations liability
  • Medical payments

Products and completed operations liability

This type of coverage protects your business against claims of bodily injury or property damage caused by a product you sell or a service you provide. It covers damages that result from completed work, as well as products that are distributed or sold.

Medical payments

Medical payments coverage pays for medical expenses for someone who is injured on your business premises or as a result of your business operations. It covers expenses such as ambulance rides, hospital stays, and X-rays.

What Does Commercial General Liability Insurance Not Cover?

While CGL insurance provides broad coverage, it does not cover everything. Here are some things that are typically excluded from CGL policies:

  • Professional liability – this type of coverage is needed for claims arising from professional advice or services
  • Employee injuries – workers’ compensation insurance is needed to cover injuries to your employees
  • Intentional acts – CGL insurance does not cover intentional acts of wrongdoing, such as fraud or theft

How Do I Purchase Commercial General Liability Insurance in Texas?

Purchasing CGL insurance in Texas is relatively easy. You can either work with a licensed insurance agent or broker, or you can purchase a policy online. Just make sure to compare multiple quotes and understand what is covered and what is not covered.

Conclusion

Having the right type of insurance coverage is crucial for any business in Texas. Commercial General Liability insurance provides protection against a wide range of risks, including bodily injury, property damage, and personal injury. By understanding the coverage options and exclusions, you can make an informed decision about the best policy for your business needs. Contact a licensed insurance agent or broker to get started on protecting your business today!

FAQ

Question
Answer
What is Commercial General Liability insurance?
Commercial General Liability insurance is a type of policy that provides coverage against claims of bodily injury, property damage, and personal injury.
What does CGL insurance cover?
CGL insurance typically covers bodily injury and property damage liability, personal and advertising injury liability, products and completed operations liability, and medical payments.
What does CGL insurance not cover?
CGL insurance does not cover professional liability, employee injuries, intentional acts, or other specific exclusions listed in the policy.
Do I need Commercial General Liability insurance in Texas?
Texas does not require businesses to carry CGL insurance. However, most businesses choose to purchase this type of policy because of the benefits it provides.
How much does CGL insurance cost in Texas?
The cost of CGL insurance in Texas varies depending on several factors, including the type and size of your business, the location, and the level of risk. On average, small businesses in Texas can expect to pay anywhere from $400 to $1,500 per year for CGL insurance.