California Property & Casualty Broker-AgentCasualty InsuranceMedium
A small construction company in California has a Commercial General Liability (CGL) policy. One of their employees accidentally damages a customer's fence while backing up a company truck at a job site. Which CGL coverage part would primarily respond to the claim for the damaged fence?
- AProducts-Completed Operations Hazard
- BCoverage A - Bodily Injury and Property Damage Liability
- CCoverage C - Medical Payments
- DCoverage B - Personal and Advertising Injury Liability
Show answer & explanationAnswer & explanation
Correct answer: B. Coverage A - Bodily Injury and Property Damage Liability
Coverage A of the CGL policy covers bodily injury and property damage for which the insured is legally liable. Damage to the customer's fence is considered property damage, and the company is legally liable due to their employee's actions.
Why the other options are wrong
- A. Products-Completed Operations Hazard is an aggregate limit within Coverage A, specifically for claims arising from products sold or operations completed, not ongoing operations damage.
- C. Coverage C covers medical expenses for injuries on the insured's premises, not property damage.
- D. Coverage B covers non-physical injuries like libel or slander, not physical property damage.
CGL Coverage A
Coverage A of a Commercial General Liability policy provides coverage for bodily injury and property damage for which the insured is legally liable.
- Primary coverage for physical injury to others or their property.
- Covers premises, operations, products-completed operations.
- Exclusions apply, such as damage to property in the insured's care, custody, or control.
Memory trick: CGL: A-B-C, Always Be Covered!