Commercial General Liability Flashcards
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Read the first 7 Commercial General Liability flashcards as text
Which of the following best describes the 'completed operations' hazard under a CGL policy?
Answer: Liability arising after the insured's work has been completed or abandoned
Completed operations hazard covers liability for bodily injury or property damage that occurs after the insured's work has been completed or abandoned.
Under the absolute pollution exclusion in the CGL, which of the following losses is most likely to be EXCLUDED?
Answer: Third-party bodily injury from chemicals released during the insured's operations
The absolute pollution exclusion typically bars coverage for bodily injury or property damage caused by the dispersal or release of pollutants such as chemicals.
An additional insured is added to a CGL policy via endorsement. Which statement about additional insureds is TRUE?
Answer: They are covered only for liability arising out of the named insured's acts or omissions
Additional insureds are typically covered only for liability that arises out of the named insured's operations or premises, not for their own independent negligence.
A liquor store sells alcohol to a visibly intoxicated patron who later injures a third party. The liquor store seeks CGL coverage. What exclusion would likely apply?
Answer: Liquor Liability exclusion
The Liquor Liability exclusion bars CGL coverage for businesses that manufacture, sell, or serve alcoholic beverages as part of their operations.
Under a CGL policy, 'supplementary payments' cover which of the following costs?
Answer: Defense attorney fees and court costs in addition to the per-occurrence limit
Supplementary payments cover defense costs, bail bonds, and other expenses the insurer incurs in defending the insured, generally in addition to the policy's liability limits.
A contractor damages underground pipes while excavating. The pipes belong to the property owner who hired the contractor. Which CGL exclusion would most likely eliminate coverage for this property damage?
Answer: Care, Custody, or Control exclusion
Property in the insured's care, custody, or control is excluded; pipes on a job site over which the contractor has control fall under this exclusion.
Which of the following is an 'insured contract' that preserves contractual liability coverage under the standard CGL?
Answer: A lease of premises where the insured assumes tort liability of the landlord
A lease of premises in which the insured assumes the tort liability of the landlord is one of the specifically enumerated 'insured contracts' in the CGL.