Commercial General Liability Insurance (CGL)

What is it?  CGL Protects your organization and its representatives against claims and/or lawsuits that arise and alleged to have caused bodily injury, personal injury or property damage as the result of the negligent actions or operations of the organization.  Bodily injury examples can be slipping/falling and breaking a bone or becoming ill after eating food at a special event sponsored by the organization.  Slip-and-fall types of policies generally exclude coverage for allegations of wrongdoing where physical injury cannot be proven (i.e. mismanagement, conflict of interest, or harassment). Property coverage, in many cases, is packaged along with GL to allow coverage for damage to office equipment or buildings, however, in its purest form GL only covers the insured for claims resulting in injury.

Why is it important? As a manager, executive director or board of directors of a nonprofit organization you are responsible for executing the purpose and goals of the organization, overseeing its day-to-day operations and risk management exposures to prevent loss for the organization such as an accident resulting in bodily injury allegedly caused by your organization if your premises is not operated in a safe and reasonable manner, or personal or advertising injury, property damage or mismanagement and other exposures.

To learn more about risks, liability, who is responsible for harm or loss, exposures and tools for loss prevention, and much more, please visit the Non Profit Risk Management Center at www.nonprofitrisk.org

What are the benefits?  Commercial General Liability insurance provides protection for your organization against claims or lawsuits caused by the action(s) or various operations of your organization.  There can be various endorsements to a CGL such as Employee Benefits Liability, Business Interruption coverage, Auto or Hired/Non-owned auto coverage and exclusions such as liquor liability exclusion, abuse and molestation exclusion (unless you request this coverage specifically due to the nature of your organization), all depending on your nonprofits’ needs.