CGL is a form of insurance designed to protect owners and operators of businesses from a wide variety of liability exposures. These exposures could include liability arising out of accidents resulting from the premises or the operations of an insured, products sold by the insured, operations completed by the insured, and contractual liability.
A Liability Insurance Program is arranged in layers. The primary or first layer consists of primary policies or an international self-insured retention. Usually, an organization has an umbrella liability policy over the primary layer. The next "layer" is considered a buffer layer of excess liability. You may obtain higher limits of liability above the working layers (primary + umbrella) with additional layers of excess liability.
Umbrella & Excess
Commercial umbrella liability policy provides additional protection to your primary liability program. This can cover for excessive lawsuit costs and court awards. This serves as an excess liability policy over the primary Commercial general liability policy. For instance, your primary policy may have a $1,000,000 limit of liability. Should the exposures of your operations warrant a higher limit of $3,000,000, you would then need to buy an umbrella coverage to cover the additional $2,000,000. This coverage can be included as part of a Commercial package.
The environmental risk with pollution legal liability exposures presents a continual challenge to corporations to manage environmental risk in today's litigious and volatile business climate. Companies increasingly face expensive litigation, mandated cleanups and high court awards, all of which can undermine management's ability to stay competitive and continually progress. In addition, a continually evolving regulatory environment leaves open trap doors that could put a company out of business.
Chances are your needs will fall into one of four major categories of environmental exposures: