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Commercial General Liability

Sometimes your client will ask you to purchase something called Commercial General Liability Insurance (CGL). Usually, they will say within the Commercial General Liability Insurance, you must include Product Liability Insurance.


So what are the relationship between Commercial General Liability Insurance and Product Liability Insurance?

Generally speaking, in Western Country, a company will purchase one policy that covers most of their business insurance needs – the “Commercial General Liability Insurance”.  A Commercial General Liability Insurance acts as a policy jacket;  you can put all your company’s insurance – eg. Third Party Liability, Auto, Medical, Workers Compensation, into the same policy.  Product Liability Insurance – being a vital part of business protection  – will be under such a policy.  Of course, a policyholder will have a choice to opt out any insurance coverage that they don’t need.


It is a different story here in Hong Kong. We are used to each policy being a stand-alone policy. This is what causes most of the confusion.  Since your client will simply ask you to purchase a Commercial General Liability Insurance. What they actually mean is for you to purchase a Product Liability Insurance.


Of course, your client might have other insurance that needs for you to purchase too. At the end of the day, you will need to do your best to accommodate their request.

Whether you are being told to get a Commercial General Liability Insurance or Product Liability Insurance, we at Grand Trust Underwriters will be here to help.  Contact us today!

To learn more about our coverage, please feel free to contact us.