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.
The process for obtaining these insurances vary between Hong Kong and other countries. They don’t always come together. Read below for a guide to the important differences, more information about what’s covered, and how to get properly insured.
Generally speaking, in Western countries, a company will purchase one policy that covers most of their business insurance needs – the “Commercial General Liability Insurance”. This acts as a policy jacket; you can put all your company’s insurance – e.g. Third-Party Liability, Auto, Medical, Workers Compensation – into the same policy.
Product Liability Insurance – being a vital part of business protection – will also fall under the Commercial General Liability Insurance policy. Of course, a policyholder will have the choice to opt out of any insurance coverage that they do not 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 Commercial General Liability Insurance. What they actually mean is for you to purchase 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.
Grand Trust Underwriters have been the leading experts for more than 40 years. Whether you are being told to get Commercial General Liability Insurance or Product Liability Insurance, our professional team is here to help. Contact us today!