Who Is an Insured Under a CGL Policy: Must-Know Details

Commercial General Liability (CGL) insurance is a crucial component of risk management for businesses. It provides coverage for a wide range of potential liabilities, including bodily injury, property damage, and personal injury claims. 

Read on to learn who is insured according to CGL policies and what level of coverage they have.

  • Who is an Insured
  • Additional insured parties
  • Employees and voluntary workers
  • Independent contractors
  • Learn more about CGL policies

An Insured Under a CGL Policy – Who Exactly Does It Refers to?

A named insured is the primary party or party named on the insurance policy. This designation typically includes the business entity itself, such as a corporation or LLC, as well as any individuals closely associated with the business, such as owners or partners. Named insured parties have specific rights and responsibilities under the CGL policy.

Named insureds have the authority to make changes to the policy, file claims, and receive notifications from the insurance provider. They are also responsible for paying premiums and ensuring that the policy meets the business’s needs.

Additional Insured Parties

An additional insured is a third party, separate from the named insured, who is granted coverage under the CGL policy. This can include:

  • Vendors, 
  • Subcontractors, 
  • Landlords, 
  • or other parties with a business relationship to the named insured. 

Adding additional insureds to a policy extends liability protection to those parties. Businesses often add additional insureds to their CGL policies to protect against liability claims that may arise from the actions or negligence of the additional insured. 

This can help safeguard the named insured from potential financial losses resulting from lawsuits or claims made by third parties.

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Employees and Voluntary Workers

Employees and voluntary workers are typically considered insured parties under a CGL policy. This means that they are covered by the policy in the event of accidents or injuries that occur during the course of their work for the business.

In the context of a CGL policy, coverage for employees and voluntary workers extends to bodily injury, property damage, and personal injury claims that may arise while they are performing work-related tasks. This coverage helps protect both the insured business and the individuals involved in the event of a covered loss.

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Independent Contractors

Unlike employees and voluntary workers, independent contractors are not automatically considered insured parties under a CGL policy. In general, independent contractors are responsible for obtaining their own insurance coverage to protect against potential liabilities.

However, there are exceptions to this rule. In some cases, businesses may extend coverage to independent contractors by adding them as additional insureds on their CGL policy. This can help ensure that all parties involved in a project are adequately protected in the event of a liability claim.

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Learn More About CGL Policies 

Understanding who is considered an insured party under a Commercial General Liability (CGL) policy is essential for businesses to ensure proper coverage and protection against potential liabilities. Named insureds, additional insureds, employees, voluntary workers, and independent contractors all play crucial roles in the scope of coverage provided by a CGL policy.

By being aware of the rights and responsibilities of each type of insured party, businesses can make informed decisions about their insurance needs and mitigate risks effectively. Consult Insuranks to tailor your CGL policies to best address your unique circumstances and protect your interests.

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