Commercial General Liability Insurance in Texas & Kansas

Commercial General Liability (CGL) Insurance protects businesses against third-party claims for bodily injury, property damage, personal injury, and advertising injury that occur during normal business operations. Bodily injury coverage applies when someone is hurt on your business premises or due to your operations—such as a customer slipping and falling in your store. Property damage coverage protects you if your business operations damage someone else’s property, like a contractor accidentally damaging a client’s building. Personal and advertising injury coverage protects against claims of libel, slander, copyright infringement, or false advertising. CGL also covers legal defense costs, which can be substantial even if you win the case. The policy typically includes premises liability (injuries at your location), products liability (injuries from products you sell), and completed operations liability (injuries from your finished work).

Commercial General Liability excludes several important exposures that require separate insurance. It does not cover professional errors or negligent advice—you need Professional Liability/Errors & Omissions Insurance for that. Employee injuries are excluded—Workers Compensation Insurance covers workplace injuries to your staff. Damage to your own property or business interruption requires Commercial Property Insurance. Auto accidents involving business vehicles need Commercial Auto Insurance. Cyber incidents, data breaches, and technology errors require Cyber Liability Insurance. Intentional acts, criminal activity, and contractual liabilities are also excluded. Additionally, CGL typically excludes pollution, mold, lead paint, and certain construction defects. Employment-related claims like discrimination, harassment, or wrongful termination need Employment Practices Liability Insurance (EPLI). Understanding these exclusions is critical—most businesses need multiple insurance policies working together to provide comprehensive protection.

Most small to mid-sized businesses carry $1 million per occurrence and $2 million aggregate limits, which is often the minimum required by commercial leases and client contracts. However, your actual needs depend on several factors. Consider your industry risk level—restaurants, contractors, and retail stores face higher liability exposure than office-based consultants. Review your contracts—many clients, especially larger companies or government entities, require $2 million per occurrence or higher. Consider your revenue and assets—larger businesses with more to lose typically need higher limits. If you work in high-risk industries like construction, manufacturing, or events, you may need $5-10 million in coverage, often provided through a combination of primary General Liability and Commercial Umbrella policies. Your lease agreement may also specify minimum coverage requirements. An insurance professional can help assess your specific exposure and recommend appropriate limits.