What damages are covered by a CGL policy?
Asked by: Ms. Kira Beier | Last update: February 15, 2025Score: 4.9/5 (42 votes)
What is not covered under a CGL policy?
In summary, while CGL policies provide broad coverage for general business liabilities, policyholders should be aware of common exclusions like expected harm, contractual obligations, pollution, aircraft/watercraft, and professional services.
What does a CGL insurance policy cover?
Commercial General Liability (CGL) insurance protects business owners against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising).
Does CGL cover punitive damages?
As the CGL policy insuring agreement does obligate an insurer to pay "as damages" those sums an insured is legally obligated to pay because of bodily injury or property damage, the simple answer to the question is, "Yes, the ISO CGL policy does obligate the insurer to pay punitive damages." 12 The legal prohibition of ...
What does general liability property damage cover?
General liability insurance can help cover someone else's real property or personal property if they're damaged by you or your employees. Property is considered 'damaged' if it: Loses monetary value, or. Loses functionality.
Know Exactly What Your CGL Insurance Covers!
What is included in property damage?
Property damage liability coverage is required by law in most states. It typically helps cover the cost of repairs if you are at fault for a car accident that damages another vehicle or property such as a fence or building front. Property damage liability coverage usually does not cover damage to your own vehicle.
What does standard general liability cover?
General liability insurance, also known as commercial general liability insurance or business liability insurance, helps cover: Costs for property damage claims against your business. Medical expenses if a customer gets injured at your business. Administrative costs to handle covered claims.
Does CGL cover consequential damages?
The rule that the standard CGL language providing coverage for damages “because of” property damage includes consequential damages having a causal connection to covered property damage is followed by the majority of courts that have considered the question.
Which of the following is excluded under Coverage A of the CGL?
Answer: Coverage A of the General Liability Policy excludes intentional property damage caused by an employee. It covers injuries or damages that are accidental, not intentional wrongful acts. Property damage caused intentionally by an employee is excluded under Coverage A of the General Liability Policy.
Do CGL policies cover all injuries?
A typical commercial general insurance policy covers accidental damage or injuries but does not cover injuries that are intentional or could be expected to happen.
What does a CGL provide coverage for?
A Commercial General Liability (CGL) policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees. It covers non-professional negligent acts.
What does CGL include?
Answer: The SSC CGL exam comprises four tiers: Tier-I (Preliminary), Tier-II (Mains), Tier-III (Descriptive Paper), and Tier-IV (Skill Test/Computer Proficiency Test). Answer: Candidates with a bachelor's degree from a recognized university are eligible to appear for the SSC CGL exam.
What do CGL policy limits apply regardless of?
(ISO), commercial general liability (CGL) insurance policy begins by making it clear that the limits shown in the declarations fix the most the insurer will pay regardless of the number of insureds, claims made, or suits brought or persons or organizations making claim or bringing suits.
Which of the following would not be considered an occurrence according to a CGL policy?
Final answer: An intentional act by the insured resulting in harm would not be considered an "occurrence" under a CGL policy and is therefore not covered, as CGL policies generally exclude coverage for intentional harms.
What is the deductible on a CGL policy?
What is a commercial general liability insurance deductible? A commercial general liability insurance deductible is the amount that a policyholder must pay out of pocket before their insurance coverage applies. The deductible can vary depending on the policy and the specific terms and conditions of the coverage.
Does a CGL policy cover fire damage?
If a fire originating from a business spreads and causes damage to another business, the CGL policy of the responsible business should typically cover any resulting covered damages of the affected business.
What does CGL not cover?
First-party Property Damage: A business will not receive first-party property protection through its CGL policy. This means that any incidents resulting in damage to the organization's commercial building, work materials, equipment and inventory are excluded from coverage.
What are exclusions on a general liability policy?
Preventable risks that lead to third-party bodily injury or property damage claims are excluded under general liability coverage. So, if a customer slips on the icy steps outside your store because you didn't put salt or sand down, the claim wouldn't be covered.
How many coverage parts to a CGL policy?
Commercial General Liability (CGL) is the standard commercial liability policy used to insure businesses. There are three primary coverage sections that make up a CGL policy: premises liability, products liability and completed operations.
What type of damages are consequential damages?
Consequential damages, otherwise known as special damages, are damages that can be proven to have occurred because of the failure of one party to meet a contractual obligation, a breach of contract.
Is theft property damage under a CGL policy?
A general liability insurance policy covers common business risks, but not the theft of your business property. With the right procedures and insurance policies in place, you can reduce the chance of a theft and the impact it can have on your business operations.
Is defamation covered under a CGL policy?
The CGL Insurance policy was introduced in 1986 and is often also referred to as a “comprehensive” general liability policy. It is the advertising and personal injury (PI) liability section of the commercial general liability policy that includes insurance for a defamation claim.
Which injury would be covered by a CGL policy?
Coverage A: Bodily Injury And Property Damage Liability
Coverage A of a CGL policy provides protection from claims that relate to when your business's operations, products, or completed work caused bodily injury or property damage.
Who is an insured under a CGL policy?
The first and most obvious entity that is insured under a CGL policy is the “Named Insured,” which is explicitly mentioned in the policy documents. In most cases, the Named Insured is the business entity that has purchased the insurance coverage.
What does a comprehensive standard general liability policy cover?
Comprehensive general liability insurance refers to a business insurance policy that provides coverage for customer injuries, customer property damage, and lawsuits related to both.