Commercial general liability (CGL) insurance is a type of insurance policy designed to provide broad coverage to businesses for bodily injury claims, property damage, and advertising and personal injury liability. CGL insurance is considered comprehensive business insurance, but it does not cover all of the risks a business may face. When a claim is covered by the insurance policy, the insurance company generally has two duties to the insured (business): the duty to defend the insured by hiring a lawyer to represent the business, and the duty to indemnify the insured, by paying to settle the claim or paying any judgment from a court or arbitrator.
In Texas, Commercial General Liability (CGL) insurance is a standard form of insurance that provides businesses with coverage for various types of risks, including bodily injury, property damage, and liability arising from advertising and personal injury. While CGL insurance offers broad protection, it does not cover all potential business risks, such as professional errors, employment disputes, or intentional acts. Under Texas law, when a claim falls within the scope of the CGL policy, the insurer has two primary obligations: the duty to defend and the duty to indemnify. The duty to defend requires the insurer to hire an attorney to represent the business in legal proceedings related to the claim. The duty to indemnify involves the insurer paying to settle the claim or covering any court or arbitration judgment against the insured business. It's important for businesses to understand the specific terms and exclusions of their CGL policies and to consult with an attorney for guidance on coverage and claims handling.
