Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Casualty InsuranceEasy
A Florida-based construction company has purchased a Commercial General Liability (CGL) policy. They are performing work on a new high-rise building. During construction, a crane operated by their subcontractor accidentally drops a beam, damaging an adjacent property. Which part of the CGL policy would most likely respond to the claim for property damage to the adjacent property?
- ACoverage B - Personal and Advertising Injury Liability
- BCoverage A - Bodily Injury and Property Damage Liability
- CCoverage D - Damage to Premises Rented to You
- DCoverage C - Medical Payments
Show answer & explanationAnswer & explanation
Correct answer: B. Coverage A - Bodily Injury and Property Damage Liability
Coverage A of the CGL policy specifically addresses bodily injury and property damage liability arising from the insured's operations. The damage to the adjacent property falls directly under the 'property damage' component of Coverage A.
Why the other options are wrong
- A. Coverage B deals with non-physical injuries like libel, slander, or copyright infringement, not physical property damage.
- C. Coverage D covers damage to premises rented to the insured, not damage to third-party property caused by the insured's operations.
- D. Coverage C provides medical payments for injuries sustained on the insured's premises, regardless of fault, and does not cover property damage.
CGL Coverage A
The core liability coverage in a Commercial General Liability policy, protecting the insured against claims for bodily injury and property damage arising from their business operations.
- Covers bodily injury and property damage.
- Arises from premises, operations, products, and completed operations.
- Subject to policy limits and exclusions.
Memory trick: CGL: Cover Great Losses from General business activities.