Commercial General Liability
Structure
CGL uses Coverage A (bodily injury and property damage), Coverage B (personal and advertising injury), and Coverage C (medical payments, no-fault and usually $5,000 outside the limits). Limits include each occurrence, general aggregate, products-completed operations aggregate, personal and advertising injury limit, damage to premises rented to you, and medical expense limit. Occurrence forms respond when injury or damage occurs; claims-made forms respond when a claim is made during the policy period, subject to an extended reporting period.
Key exclusions
Expected or intended injury; contractual liability, except an insured contract; liquor liability; workers compensation and employer liability; pollution; aircraft, auto, and watercraft; mobile equipment; damage to property in the insured's care, custody, or control; damage to your product; damage to your work; damage to impaired property; recall of products; and professional services. The your-work exclusion has a significant exception for work performed by subcontractors.
Traps
- Products-completed operations has its own aggregate separate from the general aggregate.
- Defense is outside limits in CGL, inside limits in many professional policies.
- The general aggregate is often per location or per project with endorsements.
- Additional insured endorsements vary widely in scope.
- The duty to defend is triggered by allegations, not by the insured's actual fault.
Rule of thumb: ask two questions on every CGL question - is the claim an occurrence, and is it excluded by the business-risk exclusions?