What is Commercial General Liability Insurance?

Protection against liability from losses, property damage or legal claims is critical for businesses to ensure they manage any potential operational risk.

The gross written premium in the European general liability market is expected to reach $84.03bn in 2025, with a projected annual growth rate of 4.4% between 2025-2029. These developments in the sector demonstrate an increased awareness around the support liability insurance delivers for businesses. 

Across the EU, commercial general liability insurance premiums are projected to experience a surge in demand as enterprises look to handle risk effectively within a complex market place. 

Commercial insurance providers create a secure platform for businesses with commercial general liability insurance to build confidence, protect their enterprise, and grow at their own pace. 

Contents

• What is commercial general liability insurance?
• Why you might need commercial general liability insurance. 
• Examples of commercial general liability insurance. 
• Commercial general liability insurance with GasanMamo. 

What is commercial general liability insurance?

A necessary business safeguard, commercial general liability (CGL) insurance protects your business in the event of personal injury or damage to someone’s property on your business premises. 

If you’re wondering what is commercial general liability insurance and whether it extends at all, this coverage can also relate to injury or damage to thid parties related to your business operations and products. 

This type of insurance can also be known as general liability insurance or general liability coverage. However, it’s important to note that commercial general liability insurance doesn’t cover intentional damages, or accidents involving vehicles, watercraft or planes. 

Why you might need commercial general liability insurance 

It’s likely that a high-quality commercial general liability insurance policy will help cover the following if a customer decides to make a legal claim against your business:

• Evidence gathering
• Legal representation costs
• Judgements
• Settlements

In the event of your business facing claims due to injury or damage that occurred on your business premises, CGL insurance should provide coverage for a range of issues, including:

• Physical injury
• Damage to a person’s property

Without a commercial general liability insurance policy, your business could be responsible for paying out a large sum of money to cover a problem that you weren’t expecting. Securing the right coverage will mean that you’re prepared for whatever happens, no matter how unanticipated this situation may be. 

Special considerations with commercial general liability insurance

It’s common practice for many companies to enter into contracts with other people or enterprises to ensure a project is completed. The first company may add these individuals or businesses as ‘additional insureds’ to their commercial general liability insurance policy to protect their interests in the event of any incident. 

Examples of commercial general liability insurance

It can be helpful to have a few concrete real-life examples of commercial general liability insurance in action to see how it could work for your business. Here are some use cases that illustrate the impact of this insurance policy:

1. If your business property is cleaned regularly, this may mean floors are mopped and are wet for a short period of time. If you have customers on-site and don’t use a ‘Caution: wet floor’ sign, you could be liable if a customer slips, falls and hurts themselves. This is where the coverage of insurance can help. 
2. You’re a home repair and refurbishment company. One of your contractors causes damage to a neighbour’s house. If the contractor is covered under your commercial general liability insurance policy, the impact on your business will be vastly reduced. 

Commercial general liability insurance with GasanMamo

As business insurance specialists, GasanMamo is the ideal insurance partner to support your enterprise. We listen carefully to your organisational needs and customise your insurance offering so you get the cover that works best for your business. 

Simple to implement and easy to understand, our commercial insurance plans, such as loss of insurance or cyber protection insurance, ensure your organisation is fully covered with premiums you can trust. 

If you want to know more about our commercial insurance policies, get in touch with our friendly expert team for a chat and the latest information. 

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.

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