Commercial General Liability (CGL) is one of the most crucial aspects of insurance that a community association will carry.
Why is it so important?
Commercial General Liability is in place in order to protect Associations from situations where it may be liable for property damage, bodily injury, or costs for legal defense of the Association pertaining to liability. Commercial General Liability is meant to eliminate the risk of any personal assets of homeowners and Board members alike from being at risk in the event of a claim.
What are some examples of Commercial General Liability claims?
So glad you asked! There are many ways in which an Association can come to find itself with a Commercial General Liability claim. Some of these include, but are not limited to, the following:
What are the limits that needs to be maintained to eliminate personal liability?
According to California Civil Code §5805, Associations with fewer than 100 units, the minimum occurrence limit of liability needs to be at least $2,000,000. For Associations with 100 or more units, the minimum occurrence limit of liability needs to be at least $3,000,000.