Property & Casualty Insurance Exam (National Portion)Property and Casualty Insurance BasicsHard
A business has a Commercial General Liability (CGL) policy. A customer slips and falls on a wet floor inside the business premises, sustaining an injury. Which coverage part of the CGL policy would respond to this claim?
- ACoverage B - Personal and Advertising Injury Liability
- BCoverage C - Medical Payments
- CCoverage A - Bodily Injury and Property Damage Liability
- DProducts-Completed Operations Coverage
Show answer & explanationAnswer & explanation
Correct answer: C. Coverage A - Bodily Injury and Property Damage Liability
Coverage A of a CGL policy specifically covers bodily injury and property damage for which the insured is legally liable. A customer slipping and falling on premises is a classic example of premises liability, falling under Coverage A.
Why the other options are wrong
- A. Coverage B addresses non-physical injuries like libel or slander.
- B. Coverage C (Medical Payments) pays for medical expenses regardless of fault, but Coverage A is for legal liability.
- D. Products-Completed Operations covers liability arising from products or completed work, not ongoing premises operations.
CGL Coverage A
The primary coverage part of a Commercial General Liability (CGL) policy, providing protection against claims for bodily injury and property damage caused by an occurrence on the insured's premises or arising from their operations.
- Covers bodily injury and property damage
- Arises from premises or operations
- Requires legal liability
- Subject to policy limits and exclusions
Memory trick: A for ACCIDENTS, B for BAD WORDS, C for CARE.