California Property & Casualty Broker-AgentCasualty InsuranceEasy
A California small business owner operates a convenience store. A customer slips on a wet floor inside the store, sustains a serious injury, and sues the business for damages. Which part of the Commercial General Liability (CGL) policy would respond to this claim?
- 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 CGL policy is designed to cover bodily injury and property damage for which the insured is legally liable. A customer slipping on a wet floor and sustaining injury is a classic example of premises liability, which falls under Coverage A.
Why the other options are wrong
- B. Medical Payments (Coverage C) would pay for medical expenses regardless of fault, but Coverage A responds specifically to the liability claim and lawsuit for damages.
- C. This covers non-physical injuries like libel or slander, not physical slip-and-fall injuries.
- D. This covers bodily injury or property damage arising out of the insured's products or completed work away from the premises after they are put to use, not a slip-and-fall on the premises.
CGL Premises Liability
CGL Premises Liability, covered under Coverage A, protects a business from claims of bodily injury or property damage occurring on its owned or leased premises due to its negligence.
- Covers bodily injury to third parties (e.g., customers).
- Applies to incidents occurring on the business's property.
- Requires the business to be legally liable for the injury.
Memory trick: A for Accidents on the Area.