Commercial Property and Commercial Liability Coverages
Commercial property
The Commercial Property Coverage Form insures buildings (including permanently installed fixtures and the insured's interest in improvements) and business personal property (furniture, stock, machinery, and personal property of others in the insured's care). Causes-of-loss forms escalate from Basic (named perils), to Broad (named perils plus breakage, water damage, falling objects), to Special (open perils with exclusions). The Commercial Package Policy bundles property with liability, inland marine, crime, or equipment breakdown. Business income and extra expense respond to the period of restoration (usually with a 72-hour waiting period) - the key idea is continuing income, not destroyed property.
Commercial general liability (CGL)
The occurrence-form CGL has three coverages: A - Bodily Injury and Property Damage, B - Personal and Advertising Injury, and C - Medical Payments. Coverage A splits into premises-operations and products-completed operations hazards. Standard exclusions to memorize: expected or intended injury, contractual liability, liquor liability, employer's liability/workers' compensation, auto, pollution, care-custody-control, damage to your product, damage to your work, impaired property, and recall. Endorsements add additional insureds and waivers of subrogation; umbrellas and excess policies sit above scheduled underlying limits.
Worked example
A manufacturer's CGL has a $1M occurrence limit, a $2M general aggregate, and a $2M products-completed operations aggregate. A single defective product claim pays up to $1M; the products aggregate is the bucket the products claims draw from, separate from the general aggregate.
Traps
"Special" form still excludes earthquake, flood, and wear and tear. CGL never covers the insured's own property or employee injuries. Business income is not "lost profits" from a bad economy - it requires covered physical damage.