California Property & Casualty Broker-AgentCasualty InsuranceMedium
A California business client operates a small, high-tech manufacturing company. They are purchasing a Commercial General Liability (CGL) policy. The owner is particularly concerned about lawsuits alleging false advertising or copyright infringement related to their product marketing. Which CGL coverage part would address these types of claims?
- ACoverage A - Bodily Injury and Property Damage Liability
- BCoverage B - Personal and Advertising Injury Liability
- CProducts-Completed Operations Hazard
- DCoverage C - Medical Payments
Show answer & explanationAnswer & explanation
Correct answer: B. Coverage B - Personal and Advertising Injury Liability
Coverage B of the CGL policy, Personal and Advertising Injury Liability, specifically covers claims arising from offenses such as false arrest, libel, slander, wrongful entry, and, relevant here, copyright infringement or false advertising in the course of advertising the insured's goods or services.
Why the other options are wrong
- A. Coverage A covers physical bodily injury or property damage, not intangible injuries like false advertising.
- C. Products-Completed Operations Hazard covers physical injury or damage arising from delivered products or completed work.
- D. Coverage C provides medical payments for injuries sustained on the insured's premises, regardless of fault.
CGL Coverage B
Coverage B of a Commercial General Liability policy provides coverage for 'personal and advertising injury,' which includes non-physical harms such as libel, slander, false arrest, and copyright infringement or false advertising.
- Covers intangible injuries, not physical bodily injury or property damage.
- Essential for businesses involved in marketing, publishing, or public communication.
- Subject to its own limits and exclusions.
Memory trick: CGL: A-B-C, Always Be Covered!