What is the primary purpose of a Commercial General Liability policy?

What is the primary purpose of a Commercial General Liability policy?

• A. Property and building coverage
• B. Liability coverage for business operations
• C. Vehicle liability coverage
• D. Employee benefits coverage

Answer: (B)

A Commercial General Liability policy is designed to protect a business from claims arising from its day-to-day operations that cause injury or damage to others. It covers third-party bodily injury and property damage, as well as related defense costs and settlements, and can also address advertising injuries tied to the business. This is the core risk the policy addresses: the exposure that a business can be sued for because its activities, products, or advertising caused harm to someone else. Property and building coverage, by contrast, comes from a separate Commercial Property policy; vehicle liability coverage is handled by an auto policy; and employee benefits coverage covers benefits-related risks, not general liability exposures.

A Commercial General Liability policy is designed to protect a business from claims arising from its day-to-day operations that cause injury or damage to others. It covers third-party bodily injury and property damage, as well as related defense costs and settlements, and can also address advertising injuries tied to the business. This is the core risk the policy addresses: the exposure that a business can be sued for because its activities, products, or advertising caused harm to someone else.

Property and building coverage, by contrast, comes from a separate Commercial Property policy; vehicle liability coverage is handled by an auto policy; and employee benefits coverage covers benefits-related risks, not general liability exposures.