Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsHard
A Florida 2-20 General Lines Agent is reviewing a commercial general liability (CGL) policy for a client who operates a small consulting firm. The client is concerned about potential claims arising from advice or recommendations they provide to their customers. Under a standard CGL policy, how would these types of claims typically be handled?
- AThey would be excluded, requiring a separate Errors and Omissions (E&O) policy.
- BThey would be covered under Coverage B - Personal and Advertising Injury.
- CThey would be covered under Coverage A - Bodily Injury and Property Damage.
- DThey would be covered under Medical Payments if a client was injured due to the advice.
Show answer & explanationAnswer & explanation
Correct answer: A. They would be excluded, requiring a separate Errors and Omissions (E&O) policy.
Standard Commercial General Liability (CGL) policies are designed to cover bodily injury, property damage, and personal and advertising injury. They specifically exclude claims arising from professional services or advice, which fall under professional liability, typically covered by an Errors and Omissions (E&O) policy.
Why the other options are wrong
- B. Personal and Advertising Injury covers offenses like libel, slander, copyright infringement, not professional negligence or faulty advice.
- C. Bodily injury and property damage coverage typically excludes damage arising from professional services.
- D. Medical Payments cover medical expenses for injuries on the premises, not professional liability claims.
CGL vs. E&O
Commercial General Liability (CGL) policies exclude professional liability claims (e.g., from advice or services), which are covered by Errors and Omissions (E&O) or Professional Liability policies.
- CGL covers BI/PD and Personal/Advertising Injury.
- CGL excludes professional services.
- E&O covers negligence in professional services.
Memory trick: CGL: General, Not Professional