General Liability Insurance Flashcards

What does a Commercial General Liability (CGL) policy primarily cover?

Answer: Bodily injury and property damage liability to third parties

A CGL policy covers bodily injury and property damage for which the insured becomes legally liable to third parties, not the insured's own losses.

Under an occurrence-based CGL policy, coverage is triggered when:

Answer: The bodily injury or property damage actually occurs during the policy period

Under an occurrence form, coverage is triggered when the bodily injury or property damage occurs during the policy period, regardless of when the claim is later filed.

Products-completed operations coverage under a CGL policy applies to:

Answer: Products or completed work after they have left the insured's control

Products-completed operations coverage applies to bodily injury or property damage arising from the insured's products or finished work after they have been sold, delivered, or the job has been completed.

The 'per occurrence' limit in a CGL policy is best described as:

Answer: The maximum the insurer will pay for any single occurrence regardless of the number of claimants

The per occurrence limit caps the insurer's payment for all claims arising from one single occurrence, no matter how many claimants are involved.

Personal and advertising injury coverage under a CGL policy protects against:

Answer: Offenses such as libel, slander, copyright infringement, and false advertising

Personal and advertising injury coverage addresses non-physical harms like libel, slander, malicious prosecution, copyright infringement, and false advertising claims.

Which of the following is typically EXCLUDED from a standard CGL policy?

Answer: Bodily injury to employees that is covered under workers' compensation

Employee bodily injuries are excluded from CGL policies because they are intended to be covered under workers' compensation insurance, not liability insurance.

In a CGL policy, 'occurrence' is defined as:

Answer: An accident, including continuous or repeated exposure to substantially the same harmful conditions, resulting in bodily injury or property damage

The CGL definition of 'occurrence' encompasses not only sudden accidents but also ongoing or repeated exposures to the same harmful conditions that ultimately result in injury or damage.