Does CGL cover a closed business?

by Guest » Mon Jan 25, 2010 07:35 am
Guest

I'm a building contractor and I have commercial general liability insurance in place. Will it be sufficient to cover my claims once I'd retire?

Total Comments: 3

Posted: Tue Jan 26, 2010 07:47 am Post Subject:

See, almost all of the CGL policies would fall into the category of occurrence policies. This gives us a clear view that the CGL policy would only cover for damages or injuries that occur within the policy period. Such policies would automatically get dropped as soon as you'd retire or your business closes down. If you're a contractor, you could face a claim even after the policy period is over.

It's a popular misconception if you'd believe that any injuries caused due to the wall would be covered by the CGL policy since the wall was constructed within the policy period. It would only be covered if the damage has also been caused within the policy period.

You could go for the discontinued operations coverage in case you'd like to stay covered against damages that may occur once your CGL policy ceases to exist.

Posted: Wed Jan 27, 2010 06:05 am Post Subject:

This is a pretty good option!
You'd actually get protected against damages that may be caused well after your business closes down.

It's essential to have this type of coverage if you're a building contractor or a manufacturer. Initially this coverage may cost you the same as that of your CGL policy, but thereafter the premium percentage drops with each passing year.

Posted: Fri Mar 05, 2010 05:40 pm Post Subject:

What your talking about would fall under the Products and Completed operations section of the policy. (Some companies exclude this coverage so check your policy) and it would cover you after the policy expires if the damage was done due to your negligence.

Add your comment

Image CAPTCHA
Enter the characters shown in the image.