What do CGL policy limits apply regardless of?
Asked by: Dr. Eduardo Heidenreich | Last update: May 15, 2025Score: 4.7/5 (44 votes)
What is the limit of CGL insurance?
CGL limits are the maximum amounts an insurance company will pay out for claims under your policy. Understanding and choosing the appropriate CGL limits can be as crucial as the decision to obtain the coverage itself.
What does CGL insurance not cover?
CGL policies do not provide coverage for property that you own. A separate property insurance policy is needed to insure buildings, equipment, vehicles, and other assets your business owns. CGL insurance only covers liability for third-party property damage, not damage to property you own or control.
Where may a customer with a CGL policy find their aggregate limit?
The general aggregate limit is spelled out in the insurance contract and caps the number of covered losses for which an insurer will pay. The aggregate limits are part of commercial general liability (CGL) and professional general liability insurance policies.
What does a separate aggregate limit apply to under the CGL policy?
The definition of products-completed operations hazard is included in the CGL policy—a separate aggregate limit (the products-completed operations aggregate limit) applies to payment of damages arising out of products or completed operations claims.
What is covered under a Commercial General Liability (CGL)insurance policy? #cglpolicy
What is excluded under the CGL policy?
Intentional Acts
In most cases, if an insured knowingly violates someone else's rights, the CGL does not cover that insured. This would include publishing something the insured knows is false and committing criminal acts that result in injury.
What is the difference between aggregate limit and policy limit?
Policy limits are the maximum amounts an insurance company will pay out for claims. These limits fall into two categories: Incident Limit: The maximum amount payable for a single covered incident. Aggregate Limit:The maximum amount payable for all covered claims during the policy period.
Which of the following is not subject to the general aggregate limit in a CGL policy?
Explanation: Product and Completed Operations is NOT subject to the General Aggregate limit in a CGL policy. The General Aggregate limit typically includes coverages such as Personal and Advertising Injury, Medical Payments, and Damages to Premises Rented by You.
What is per location general aggregate limit?
If the general aggregate limit is on a “per location” basis, that means it will apply to each location of the policyholder. This typically is used by owners of buildings and retail stores since they have many different locations and they want aggregate limits for each location.
Do CGL policies have deductibles?
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 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.
Does a CGL policy cover independent contractors?
Liability coverage under a commercial package policy (CPP), businessowners policy (BOP), or commercial general liability (CGL) policy may not automatically provide coverage for independent contractors. However, endorsements can provide the coverage a business needs to protect itself from its contractors' liability.
Who is not an insured under a CGL policy?
Under the CGL policy, a corporate parent is not afforded coverage as an insured. Subsidiaries are afforded coverage in limited instances.
What is the available aggregate limit?
An aggregate limit is a maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period, usually one year. Insurance policies typically set caps on both individual claims and the aggregate of claims.
What does 3 million aggregate mean?
If you have per-claim insurance, the aggregate limit will never reset. If you choose a $3 million aggregate limit when you purchase your insurance, that is your limit for the duration of the policy. As soon as you hit your aggregate limit, you're no longer covered until you increase the limit.
How do GL limits work?
Your insurance company will only cover claims from an incident up to the per-occurrence limit. With a $2 million aggregate limit, if your general liability claims add up to more than this in a coverage year, your insurance company would cover up to $2 million in claims.
What is the per location limit?
The per location limit refers to the highest value to which an insurer is exposed at any one place during the transit. Transit is when the cargo is not within the direct and effective control of either the seller or the buyer, whilst it's in the transportation chain in the custody of carriers.
What is the aggregate limit clause?
Distinct from a per-claim limit, which states the amount an insurer will pay for each individual claim made during the policy period, the aggregate limit is the maximum amount an insurer will pay for all such claims made against the insured during the policy period, no matter how many separate claims might be made.
What are CGL policy conditions?
CGL policies cover property damage, bodily injury, and other types of claims. This coverage will help you pay attorney fees or settlement costs in the event of a lawsuit. And you can augment your coverage with extensions that cover errors and omissions, excess liability, or employment practices liability.
Which of the following is a basic limit under the CGL?
In a Commercial General Liability (CGL) policy, the basic limit that applies to each occurrence for Bodily Injury (BI) and Property Damage (PD) generally starts at $1 million. This means that for any single event that results in bodily injury or property damage, the policy will cover up to $1 million in claims.
What is exclusion in CGL policy?
Intentional Acts of Property Damage or Bodily Injury
Though CGL insurance is meant to provide protection in the event of third-party lawsuits, it does not support criminal acts. Hence, deliberate acts with an intent to cause harm are always excluded in CGL policies.
What are policy limits examples?
Examples of Policy Limits in Different Insurance Types
Liability Coverage: Typically has separate limits for bodily injury per person, bodily injury per accident, and property damage per accident. For example, a policy might have limits of $100,000 per person, $300,000 per accident, and $50,000 for property damage.
Which of the following statements about an aggregate limit is correct?
The correct answer is: c) It is the total limit for all covered claims during the policy period. Explanation: 1. The general aggregate limit under a Commercial General Liability (CGL) Coverage Form is the total amount that the insurer will pay for all covered claims during the policy period.
What does it mean if an insurance policy has an aggregate limit of $1 million?
Let's say you have a $1 million aggregate limit for your general liability coverage, also known as commercial general liability (CGL) insurance. That means the $1 million limit is the maximum amount your insurance will pay for claims during the policy term.