Texas General Lines — Property and CasualtyCommercial LinesMedium
A small distribution company is assessing its General Liability policy. They are concerned about potential claims arising from bodily injury or property damage caused by their products after they have left their control and are in the hands of consumers. Which CGL coverage grant specifically addresses this concern?
- ACoverage A - Bodily Injury and Property Damage Liability
- BSupplementary Payments
- CCoverage C - Medical Payments
- DCoverage B - Personal and Advertising Injury Liability
Show answer & explanationAnswer & explanation
Correct answer: A. Coverage A - Bodily Injury and Property Damage Liability
Coverage A of the CGL policy includes 'products-completed operations hazard,' which addresses bodily injury or property damage occurring away from the insured's premises and arising out of the insured's product or work after it has been put to its intended use.
Why the other options are wrong
- B. These are additional payments for expenses like defense costs and bond premiums, not a primary coverage grant for liability.
- C. This covers medical expenses for bodily injury caused by an accident on the insured's premises or operations, regardless of fault, but not products liability.
- D. This covers non-physical injuries like libel, slander, or copyright infringement.
CGL Coverage A - Products-Completed Operations
Within CGL Coverage A, the 'products-completed operations hazard' covers bodily injury and property damage occurring away from the insured's premises and arising out of the insured's product or work after it has been put to its intended use.
- Part of Coverage A (Bodily Injury and Property Damage)
- Applies once product/work is completed and off-premises
- Covers BI/PD claims from products or completed work
Memory trick: CGL's A, B, C: Accidents, Bad words, and Caring payouts.