Texas General Lines — Property and CasualtyCommercial LinesEasy
A small construction company is reviewing its Commercial General Liability (CGL) policy. They are concerned about potential claims arising from bodily injury or property damage that occurs on their premises or as a result of their ongoing operations. Which section of the CGL policy primarily addresses these concerns?
- ACoverage B - Personal and Advertising Injury
- BCoverage A - Bodily Injury and Property Damage
- CSupplementary Payments
- DCoverage C - Medical Payments
Show answer & explanationAnswer & explanation
Correct answer: B. Coverage A - Bodily Injury and Property Damage
Coverage A of the Commercial General Liability policy is specifically designed to cover bodily injury and property damage liabilities that arise from the insured's premises or ongoing operations.
Why the other options are wrong
- A. Coverage B deals with personal and advertising injury, such as libel, slander, or copyright infringement.
- C. Supplementary Payments are additional amounts paid by the insurer beyond the policy limits for defense costs, bond premiums, etc., not a primary coverage section.
- D. Coverage C addresses medical payments for minor injuries, not primary liability for bodily injury or property damage.
CGL Coverage A
The core coverage part of a Commercial General Liability policy that protects the insured against claims of bodily injury or property damage for which they are legally liable.
- Covers bodily injury and property damage.
- Applies to premises and ongoing operations.
- Subject to policy limits and exclusions.
Memory trick: A business needs protection from Aches, Bumps, and Cures.