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Glossary

Commercial general liability (CGL)

Commercial general liability is the foundation of business liability coverage, protecting against third-party bodily injury, property damage, and personal or advertising injury claims. For property managers it responds when a guest slips on a wet deck or a vendor damages a neighbor's fence.

By Andrew Bate, Co-founderReviewed by Stuart BateUpdated

Why this matters for property managers

CGL is the policy most permit offices and owner contracts are actually asking for when they say 'proof of insurance'. Limits of $1M per occurrence are the common benchmark; Chicago, Nashville, New Orleans, and Denver all require at least that. Company-level CGL and per-property liability are different layers, and managers need both.

CGL insurance for property management companies

A property management company usually needs CGL twice over. The company policy covers the business itself, its office, staff and operations, with $1M per occurrence and $2M aggregate as the benchmark owners and permit offices expect. The portfolio side covers guest injury and third-party damage at every managed home, which the company policy does not reach unless each property is scheduled on it. Velaris programs handle that second layer per property, so the certificate for a city, HOA or owner shows the limit that home needs rather than the company's blanket policy.

Related terms

General liability
General liability covers third-party bodily injury and property damage claims. If a guest trips on a loose step and breaks an arm, general liability pays the medical bills and defends any lawsuit.
Per-occurrence limit
The per-occurrence limit is the maximum a policy pays for a single claim or incident. With a $1,000,000 per-occurrence limit, no single claim can exceed $1,000,000 even if the aggregate limit is higher.
Aggregate limit
The aggregate limit is the maximum total an insurance policy will pay across all claims during the policy period, usually one year. Once the aggregate is exhausted, further claims are not covered until the policy renews.
Umbrella policy
An umbrella policy adds a layer of liability coverage above underlying policies. If general liability pays its $1,000,000 limit and a lawsuit demands $1,500,000, the umbrella covers the remaining $500,000.
Short-term rental insurance
Short-term rental insurance is commercial coverage for properties rented nightly or weekly through Airbnb, Vrbo, or direct booking. It covers the risks homeowners and landlord policies exclude: guest liability, guest-caused damage, and lost booking revenue.

Browse every term in the insurance glossary for property managers.

Commercial general liability (CGL): common questions

Does CGL cover guest injuries at managed homes?

Only if the managed homes are scheduled on the policy or covered by a program that extends liability to each property. A company-only CGL covers the manager's operations, not every home in the portfolio.

What limits do property managers carry?

$1M per occurrence and $2M aggregate is the common baseline, with umbrella coverage above for larger portfolios. Velaris programs offer per-property limits from $100K to $1M.

Related guides

General liability for property managers
Read the full Velaris guide.
Insurance for vacation rental property managers
Read the full Velaris guide.
Certificates of insurance
Read the full Velaris guide.

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