The commercial general liability policy is the core casualty form on the exam. Facts below are from ISO form CG 00 01.
The three coverages
- Coverage A: bodily injury and property damage the insured is legally obligated to pay. On the occurrence form, the injury or damage must happen during the policy period, whenever the claim is made.
- Coverage B: personal and advertising injury from listed offenses, such as false arrest, malicious prosecution, wrongful eviction, defamation and invasion of privacy.
- Coverage C: medical payments regardless of fault, if the accident happens in the coverage territory and expenses are incurred and reported within one year.
Limits and supplementary payments
- The Each Occurrence limit caps Coverage A damages plus Coverage C medical expenses for one occurrence. Damage to premises rented to you has its own limit.
- Supplementary payments include bail bonds up to $250 and loss of earnings up to $250 a day for helping the insurer, and they do not reduce the limits.
Key exclusions
Expected or intended injury (reasonable force in self-defense excepted), contractual liability (except an insured contract), pollution (hostile fire smoke excepted), recall costs, damage to your product, electronic data, and workers' compensation and employer's liability obligations.
Products-completed operations
Covers injury or damage away from premises the insured owns or rents, arising from its product or completed work. Products still in the insured's possession and work not yet completed are not included.
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