Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Casualty InsuranceEasy
A Florida retail store owner is concerned about potential losses if a customer accidentally slips and falls inside their store, leading to a lawsuit. The owner has a Commercial General Liability (CGL) policy. Which part of the CGL policy is designed to cover the store owner's legal defense costs and any judgments or settlements for such an incident?
- ACoverage A - Bodily Injury and Property Damage Liability
- BCoverage C - Medical Payments
- CCoverage B - Personal and Advertising Injury Liability
- DProducts-Completed Operations Hazard
Show answer & explanationAnswer & explanation
Correct answer: A. Coverage A - Bodily Injury and Property Damage Liability
Coverage A of the Commercial General Liability (CGL) policy specifically covers bodily injury and property damage for which the insured is legally liable. A customer slipping and falling inside the store, leading to injury and a lawsuit, falls directly under this coverage, including defense costs.
Why the other options are wrong
- B. Coverage C provides no-fault medical payments for minor injuries, but the scenario describes a lawsuit and potential judgments, which falls under liability.
- C. Coverage B covers non-physical injuries like libel, slander, or copyright infringement, not slip and fall incidents.
- D. Products-Completed Operations Hazard is a component of Coverage A, but Coverage A itself is the broader, more direct answer for premises liability.
CGL Coverage A
The primary insuring agreement of a Commercial General Liability policy, covering sums the insured is legally obligated to pay due to bodily injury or property damage.
- Covers premises and operations liability.
- Includes defense costs.
- Subject to per occurrence and aggregate limits.
Memory trick: CGL: A for body, B for words, C for small hurts.