Comprehensive General Liability

Comprehensive general liability (CGL) is a form of comprehensive insurance that offers coverage in case of damage or injury caused by a business’s operations or products, or on its premises.


This policy will indemnify Insured up to limit of indemnity;

1.When Insured is legally liable to pay as damages for

  • Bodily Injury to third party or
  • Damage to third party’s tangible property

2.As a result of performing of the contract work

3.Provided that such liability to third party bodily injury of property damage occurred during the policy period

In addition, this policy also pays for legal costs and expenses of defending such claim and it is included as part of the limit of indemnity

Object of Insured

The object of coverage in Comprehensive General Liability Insurance is a lawsuit from a third party due to the insured’s negligence in operating his business.


  1. Under workmen’s compensation Act 1952, employers’ liability, disability benefits, unemployment compensation law or similar law;
  2. For Pure Financial Loss. The term “Pure Financial Loss” means any loss other than Bodily Injury and/or Property Damage;
  3. For libel or slander, or infringement or passing off of plan, copyright, patent, trade name, trade mark, registered design or any other intellectual proprietary rights;
  4. For property damage to any property owned by, occupied by or rented to the Named Insured, or to any work or operation performed by or on behalf of the Named Insured, or to any property in the Named Insured’s care, custody or control;
  5. Arising out of sole negligence of the Principal(s) or any other indemnitee(s);
  6. Arising out of the rendering of or failure to render any professional service;
  7. Arising out of any commodity, article, goods or thing sold or supplied;
  8. Arising out of ownership, possession, use or operation of watercraft or aircraft;
  9. Arising out of penalty or liquidated damages clauses, or punitive or exemplary damages;
  10. Arising out of asbestiform talc, asbestos, diethylstibesterol, dioxin, urea formaldehyde, polychlorinated biphenyls, toxic mould or electric magnetic field;
  11. Arising out of pollution or environmental impairment of whatsoever kinds unless this Policy is extended to indemnify against such liability to the extent as stated under the Sudden and Accidental Pollution Liability Clause;
  12. Arising out of war (whether declared or not), invasion, act of foreign enemy, hostilities, civil war, insurrection, rebellion, revolution, mutiny, military or usurped power, sack or pillage in connection therewith, confiscation or destruction by any government or public authority;
  13. Arising out of terrorism (as per Terrorism Exclusion Clause);
  14. Arising out of radiations (as per Institute Radioactive Contamination Exclusion Clause); or
  15. Arising out of completed operation hazards (as per Completed Operation Liability Exclusion Clause).
  16. Arising out of demolition works.
  17. Arising out of all transit related risk (ie transportation)
  18. Communicable Diseases
  19. Note: This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy

Extended Coverage

  1. Automobile Liability
  2. Contractual Liability
  3. Sudden and Accidental Pollution Liability
  4. Damage to Principal’s existing property
  5. Workmen’s Compensation Liability
  6. Employer’s Liability

Sum Insured

A general aggregate limit is a crucial term in CGL insurance, and it’s equally critical that a policyholder understands it. The general aggregate limit places a ceiling on the insurer’s obligation to pay for property damage, bodily injury, medical expenses, lawsuits, and so on, which may arise during the tenure of the insurance policy. The coverage will also pay for any claim, loss, and lawsuit in which a policyholder is involved until it reaches the aggregate limit. Once the policyholder has crossed the general aggregate limit, the CGL company is not obligated to compensate for losses, litigation costs, or claims.

Minimum Data Requirement

The total premium that Insured have to pay may vary depending on the underwriting requirements of the Insurer. The following factors will affect the premium:

  1. Contract Value
  2. Contract Duration
  3. Detailed Scope of Works
  4. Location of Risk
  5. Limit of Indemnity
  6. Experience in the business
  7. Loss history
  8. Third party surrounding property
  9. Liability assumed by Insured
  • List employee and salary

Claim Procedures

Report as soon as possible to the insurance company accompanied by taking the necessary rescue and security measures to avoid a bigger claim and complete the required documents:

  1. Claim Form
  2. The loss report includes a chronology of events.
  3. Police statement letter confirming the accident (for missing of property)
  4. Photographs depicting the following:
  • Location situation where the incident took place.
  • The condition of the affected third party’s property and/or the injured person
  1. Claim letter from the third party lodged against you along with his/her ID card.
  2. Document that evidencing the third party in the location at the time of accident.
  3. Repair’s quotation from workshop related to the damage as the result of the accident
  4. Original invoice for the medical treatment to the injury arising out from the accident.
  5. Other related documents

Note: Please do not admit any liability to the third party and make any agreement prior to the