Very broadly, Commercial General Liablility (CGL) covers a business for accidental bodily injury and property damage that might be suffered by others that are a result of the negligence of the business due to its premises or the conducting of its operations.

A CGL policy usually shows the following coverages. Example coverages are also shown to demonstrate what you might see on a CGL policy.

$1,000,000 Each Occurrence
$100,000 Damage To Rented Property (Each Occurrence)
$10,000 Medical Expense (Any One Person)
$1,000,000 Personal and Advertising Injury
$2,000.000 General Aggregate
$2,000,000 Products – Completed Operations Aggregate.

Each Occurrence

This limit is the total that would be paid, during the policy period, for any one occurrence, claim or loss, except for those that result from the business's product or that occur after the business has completed its work, which would be covered under the Products Completed Operations Aggregate Limit.

Damage To Rented Property (Each Occurrence)

If the insured is a tenant and, due to his negligence, accidental damage results to the area he occupies, this is the limit that would be paid to repair the damage. If such damage spreads to other locations in the same building or adjacent buildings, such damage would be covered under the Each Occurrence Limit.

Medical Expense (Any One Person)

If a person suffers bodily injury due to the operations or premises of the insured, this is the maximum limit that would be paid. This coverage applies regardless of negligence, and only if the total cost of the injury is less than the limit, and the claimant's only interest is having the bills paid. If the cost exceeds the limit, or if the claimant hires an attorney or sues, then this coverage would not be used. The claim would then be adjusted under the Each Occurrence Limit. This coverage would not cover owners or employees of the business, nor any other named insured on the policy.

Personal and Advertising Injury

There is one limit here. There are two separate exposures covered here.

Personal Injury

This provides coverage in case the business causes a claimant emotional or financial injury as a result of libel, slander, defamation of character, false arrest, malicious prosecution, invasion of privacy, and wrongful entry or eviction.

Advertising Injury

This provides coverage in case the business causes a claimant emotional or financial injury as a result of oral or written publication, or infringement of copyright, title or slogan.

General Aggregate

This limit is the maximum that would be paid, during the policy period, for all occurrences, claims or losses.

Products – Completed Operations Aggregate

There is one limit here. There are two separate exposures covered here. This limit is the total that would be paid, during the policy period, for all occurrences, claims or losses that are related to a business's products or completed operations. This limit is in addition to the Each Occurrence Limit, which applies to occurrences, claims or losses that are not related to Products or Completed Operations.

Products

Coverage applies to products made by the business, and bodily injury or property damage that may occur due to defects in the product, or dangers arising from the product.

Completed Operations

Coverage applies to bodily injury or property damage losses that may occur after a business has completed its work on a job and left the location of the work. (Example: A contractor builds a deck. One month later the deck collapses and injures someone standing on it.)

Claims Caution

The above explanation of CGL coverage is a general description only of CGL terms. It does not replace the language of any specific CGL policy. There are many conditions, limitations and exclusions in a CGL policy. CGL does not cover any vehicle exposure, the insured's property or equipment, or the insured's employees. A CGL policy may be 30 to 100 pages long and full of cross-referenced legal terminology. In the case of a claim, our agency does not have the authority to interpret coverage and decide if a loss is covered or not. The customer or claimant must get in contact directly with the insurance company's claim department, so a loss may be handled competently by an adjuster familiar with the terms of the policy.

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Questions?

If you have questions concerning this information, please call us at 503-620-0230, or come in.

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