Getting served with a lawsuit can make even a well-run business feel like the floor just shifted. One of the first questions many owners ask is simple: Will insurance pay for this?
In general terms, that question often starts with a tender under a commercial general liability (CGL) policy. Tendering a lawsuit usually means giving the claim or suit to the liability insurer and asking it to provide a defense, indemnity, or both under the policy. A standard CGL policy is commonly described as the first line of business liability protection for claims involving bodily injury, property damage, and personal and advertising injury, subject to the policy’s terms, conditions, and exclusions. The insurer’s defense obligation is often broad, and many policies provide a defense even if allegations later turn out to be groundless. The Insurance Information Institute, the American Bar Association, and IRMI all describe that framework in similar terms.
In this post you’ll learn how tendering works, what documents usually matter most, what insurers often look at first, where businesses run into problems, and how an attorney can help when coverage is disputed. If you want broader context on how these policies work, this overview of business liability coverage basics pairs well with the steps below.
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A tender is the process of notifying the insurer about a claim or lawsuit and asking the carrier to respond under the policy. In practice, businesses often tender by sending the complaint, summons, and a short written demand for defense and indemnity to the insurer, broker, claims contact, or all three.
That may sound straightforward, but the details often shape the outcome. Liability policies commonly require the insured to provide notice of an occurrence, claim, or suit “as soon as practicable” or with similar timing language. The Insurance Information Institute notes that when a business is sued, it generally turns the suit over to the insurer and provides information about the occurrence and any resulting injuries or damage. The ABA likewise notes that occurrence-based and claims-made liability policies often contain prompt-notice provisions, although late notice consequences can vary widely by state law and policy type. III and the ABA both emphasize this point.
Tendering is not just clerical. It is often the event that starts the insurer’s coverage review and can affect:
The first practical step is collecting the lawsuit papers and the policy set that may apply. That usually includes: