Understanding the Differences Between Commercial General Liability and Owners’ Landlords and Tenants Liability
Commercial General Liability (CGL) and Owners' Landlords and Tenants Liability (OLT) are two types of insurance policies that aim to protect businesses and property owners from various liability risks. However, these policies cater to different needs and scenarios. Let's delve into the key differences between these two insurance policies.
Commercial General Liability (CGL)
Purpose: CGL policies are designed to shield businesses from claims related to bodily injury, property damage, and personal injury such as slander or libel that occur during the course of business operations.
Coverage:
Bodily Injury: Provides coverage for injuries to third parties on the business premises or due to business operations. Property Damage: Covers damage caused to someone else's property. Personal and Advertising Injury: Covers claims related to false advertising, copyright infringement, and other non-physical injuries.Who Needs It: Primarily businesses of all sizes, including contractors, retailers, and service providers.
Exclusions: Typically excludes professional liability, employee injuries which are covered by workers compensation, and certain types of contractual liabilities.
Owners' Landlords and Tenants Liability (OLT)
Purpose: OLT policies are specifically designed for property owners and landlords to protect against liabilities arising from their role as property owners. This includes protection for both the property owners and tenants.
Coverage:
Bodily Injury: Covers claims for injuries that occur on the property owned by the landlord. Property Damage: Covers damage to tenants' property caused by the landlord's negligence. Tenant Liability: Protects landlords from claims made by tenants regarding the condition of the property.Who Needs It: Primarily property owners, landlords, and sometimes tenants who want to protect themselves against liability claims related to their rental properties.
Exclusions: May exclude certain types of risks such as those related to business operations conducted on the property or intentional acts.
Summary
Commercial General Liability (CGL) is broader and aimed at businesses, covering a wide range of liability risks associated with business operations. On the other hand, Owners' Landlords and Tenants Liability (OLT) is more specialized, primarily focusing on liabilities related to property ownership and leasing.
When choosing between these types of coverage, it is essential to assess the specific risks associated with your business or property ownership and consult with an insurance professional to ensure adequate protection.
For more information on insurance policies and to find the right coverage for your business or property, contact an experienced insurance advisor today.