Most companies obtain basic liability coverage through a commercial general liability (CGL) form. The CGL covers four types of injuries:

• bodily injury that results in actual physical damage or loss


• property damage or loss


• personal injury


• advertising injury

Slander or damage to reputation falls under personal injury. Advertising injury protects companies from charges of negligence that result from the promotion of its own goods or services.

Supplemental coverage

Most companies will need to supplement their CGL with at least two other types of coverage: automobile insurance (aka fleet insurance) and workers' compensation.

Also, if your company risks facing particular types of claims - if, for example, you sell or serve alcohol, pose an environmental threat, or produce goods that could be subject to product recall - you may have to obtain special coverage.

Companies requiring higher levels of coverage than provided with their CGL often augment the policy with an umbrella liability insurance policy.

Umbrella insurance provides additional coverage for areas where you are not insured, coming into effect once a certain deductible, or self-insured retention level, is met. Contracts for umbrella insurance are usually tailored to each account, and the risks covered are generally negotiated.