Types of Commercial General Liability (CGL) Policies in India
Commercial General Liability Insurance is not one fixed policy. It can be customised depending on the nature of business, level of risk, and legal requirements. Understanding the types of CGL coverage available helps businesses choose the right protection instead of buying generic insurance.
1. Premises Liability
Covers accidents and injuries that occur on the business property (office, shop, warehouse, factory, hotel, etc.).
Example:
A visitor trips over loose wiring in your office and is injured. Premises liability covers medical and legal expenses.
2. Operations Liability
Protects against injuries or damages that occur while the business is performing work offsite or at a client’s location.
Example:
A technician damages a client’s flooring while installing equipment at their site.
3. Products Liability (Optional Extension)
Covers injury or property damage caused by products manufactured, sold, or distributed by your business.
Example:
A customer claims that a home appliance sold by your store caused an electrical fire.
4. Completed Operations Liability
Provides coverage for damages caused after a job or project is completed.
Example:
A contractor installs a glass railing in a commercial building. Weeks later, it collapses and injures a visitor. This is covered under completed operations liability.
5. Occurrence-Based vs Claims-Made Policies
| Policy Type |
What It Means |
| Occurrence-Based |
Covers incidents that happen during the policy period, even if the claim is filed later. More common in India for CGL. |
| Claims-Made |
Covers claims filed only during the active policy period. Used more for professional indemnity policies than CGL. |
6. Tenants’ Legal Liability / Landlord Liability
Covers damage caused by tenants to rented property, often required by landlords before leasing commercial space.
Example:
A fire breaks out in an office rented by a business, causing damage to the building structure owned by the landlord.
7. Vendor / Contractor Liability
Some companies require vendors, contractors or event partners to hold their own CGL coverage. Businesses purchasing this may also add vendors as insured parties (Additional Insured Clause).
8. Industry-Specific Custom CGL Policies
| Industry |
Additional Extensions |
| Restaurants/Hotels |
Food poisoning, fire damage to neighbouring shops |
| Manufacturers |
Product liability, storage risk, warehouse damage |
| IT Parks/Offices |
Premises liability, landlord coverage, public access risk |
| Event Organisers |
Public liability for crowd injury, venue property damage |
In summary
CGL can be a simple policy or a comprehensive one based on how it is customised. Businesses need to choose coverage based on how they operate—on-premise, offsite, with customers, products, or large public interactions.
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