Every time someone visits your office, attends your event, or interacts with your physical space, there's a chance something goes wrong. Commercial General Liability is the foundational coverage that protects your company when a third party, someone who isn't your employee, gets hurt or has their property damaged because of your business operations. It's the policy most leases, contracts, and investors require you to have, and it's usually the first insurance a startup should buy.
Last reviewed April 24, 2026 · Reviewed by the Corgi Insurance team
Your business exists in the real world. CGL covers what happens when the real world goes sideways.
Coverage structure under form CORG CGL 0100. Limits shown are illustrative and may differ from your issued policy. Important: The coverage descriptions on this page are general summaries for informational purposes only. They do not constitute a policy, binder, or guarantee of coverage. Coverage is provided only under the terms, conditions, exclusions, and limits of the issued policy. Always refer to your actual policy wording and declarations page for the governing terms and conditions. If there is any conflict between this summary and the policy, the policy controls.
Commercial General Liability
What this policy pays for.
A visitor trips over a cable in your office and breaks their wrist.1
Your policy covers the legal defense and any settlement or judgment for third-party bodily injury arising from your premises or operations. The injured person's medical bills, lost wages, and pain-and-suffering claim are covered up to your per-occurrence limit. The insurer has a duty to defend covered claims, meaning defense counsel is appointed and paid for on your behalf, subject to the applicable retention.
A competitor claims your latest ad campaign copied their slogan.2
If a third party alleges that your advertising activities caused harm (such as misappropriation of their advertising idea or slogan), your policy covers the defense and any resulting damages. This applies to claims made about your promotional content, not your product itself.
Your team is demoing hardware at a trade show, and the prototype falls off the table and smashes another exhibitor's laptop.3
When your business operations cause physical damage to someone else's tangible property, your CGL steps in to cover the repair or replacement costs, plus your legal defense. This applies to property you don't own, rent, or have in your care.
Your CGL also includes Coverage C, Medical Payments, for small third-party injuries on your premises or arising from your operations.4
Your CGL also includes Coverage C, Medical Payments, a no-fault coverage that pays reasonable medical expenses for third parties injured on your premises or by your operations, regardless of whether you were negligent. It resolves small incidents (typically up to $5K–$10K per person) before they become lawsuits.
Scenario notes
CGL is an occurrence-based policy underwritten by Technology Risk Retention Group, Inc. The insurer has a duty to defend covered claims. A per-occurrence retention (self-insured retention) applies. You are responsible for costs within the retention amount before the insurer's obligations attach. Refer to your Declarations page for your specific retention amount and limits.
Coverage B applies to enumerated "personal and advertising injury" offenses only. It does not cover claims arising from professional services, breach of contract, or knowing violations. Patent infringement is excluded. If your business is primarily internet- or media-based, Coverage B may be further limited. Ask your advisor about the media and internet business exclusion.
The care, custody, or control exclusion applies: property in your possession, or property you are actively working on, is not covered under CGL. If your team is installing equipment at a client site and damages the equipment being installed, that scenario would not be covered.
Medical Payments (Coverage C) is a no-fault coverage with its own per-person limit, separate from the liability coverages. It applies to injuries on your premises or arising from your operations (including off-premises). It does not apply to your employees or to persons normally occupying the premises.
Policy notes
CGL does not cover professional errors or omissions, cyber incidents, employment disputes, auto accidents, or intentional acts. Products-completed operations has its own separate aggregate limit. Fines, penalties, and punitive damages are excluded from the definition of "Damages." Refer to your policy for complete exclusions.
Contractual liability coverage applies only to liability assumed in an "insured contract" as defined in the policy: primarily leases, easements, and agreements where you take on another party's legal liability for injuries or damages. General breach-of-contract claims are not covered.
The scenarios above are illustrative examples only and do not guarantee coverage for any specific claim. Actual coverage depends on the facts and circumstances of each claim and the specific terms of your issued policy. Results may differ based on policy endorsements, exclusions, limits, and applicable law.
CGL, Tech E&O, Cyber Liability each respond to a different claim trigger and coverage boundary.
What triggers it: Physical-world incidents where someone gets hurt or their property gets damaged Type of harm covered: Bodily injury, property damage, and certain advertising offenses Common scenario: Visitor slips in your office Key difference: Covers the physical world. If no one was injured and no tangible property was damaged, CGL probably isn't the right policy.
What triggers it: Professional mistakes where your tech service or product causes a client financial harm Type of harm covered: Financial loss from errors, omissions, or negligent acts in your tech work Common scenario: Your analytics engine miscalculates, costing a client $500K in bad orders Key difference: Covers your professional work product. If the claim is about what you built or delivered, this is where it lives.
What triggers it: Data and network incidents where a breach or security failure leads to third-party claims Type of harm covered: Third-party liability from unauthorized access, data disclosure, or network failure Common scenario: Hackers steal 50K customer records and a class action follows Key difference: Covers the digital perimeter. If the claim involves unauthorized data access or network compromise, start here.
Coverage A, Bodily Injury Liability, responds when a visitor trips over a cable in your office and breaks their wrist.
CGL is an occurrence-based policy underwritten by Technology Risk Retention Group, Inc. The insurer has a duty to defend covered claims. A per-occurrence retention (self-insured retention) applies. You are responsible for costs within the retention amount before the insurer's obligations attach. Refer to your Declarations page for your specific retention amount and limits. Coverage B applies to enumerated "personal and advertising injury" offenses only. It does not cover claims arising from professional services, breach of contract, or knowing violations. Patent infringement is excluded. If your business is primarily internet- or media-based, Coverage B may be further limited. Ask your advisor about the media and internet business exclusion.
Available add-ons include Hired and Non-Owned Auto (HNOA) Endorsement, Waiver of Subrogation Endorsement, Additional Insured Endorsement. Endorsements are required where noted and availability may vary by jurisdiction and underwriting.
Extends your CGL to cover liability when employees drive personal or rented vehicles on company business. If your team drives to client meetings, picks up supplies, or rents cars on work trips, this fills the gap between their personal auto insurance and your company's exposure. [Endorsement required, see HNOA product page]
Some landlords and clients require you to waive your insurer's right to recover costs from them after a claim. This endorsement satisfies that contractual requirement. [Endorsement required]
Adds your landlord, client, or business partner as an additional insured on your policy, a common requirement in commercial leases and service agreements. [Endorsement required]
CGL is the foundation. Layer in Tech E&O, Cyber, D&O, and more: modular coverage that grows with you.
Protects your business against third-party claims for bodily injury, property damage, and personal or advertising injury arising from your operations.
Protects against losses and claims resulting from data breaches, cyberattacks, and network security failures.
Covers claims alleging your technology products or services failed to perform as intended, causing financial harm to a client.
Covers claims made against company leaders for alleged wrongful acts in managing the business.
Protects against claims alleging wrongful termination, discrimination, harassment, or other employment-related issues.
Protects your company and plan fiduciaries against claims alleging mismanagement of employee benefit plans, including retirement and health plans.
Protects against claims arising from your published or distributed content, including allegations of defamation, copyright infringement, or invasion of privacy.
Provides liability coverage when employees use rented or personal vehicles for company business.
Key terms from the policy language and approved coverage summary.
Go deeper on CGL and the rest of the startup insurance stack.
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