Commercial General Liability (CGL) Flashcard

Front

What does Commercial General Liability (CGL) primarily protect businesses from?

Back

Lawsuits related to third-party liability claims

Answer explanation

Commercial General Liability (CGL) primarily protects businesses from lawsuits related to third-party liability claims, covering legal costs and damages arising from injuries or property damage to others.

Front

Which of the following is NOT covered under Coverage A of the CGL? Completed operations, Libel and slander, Property damage, Bodily injury

Back

Libel and slander

Answer explanation

Libel and slander are not covered under Coverage A of the CGL, which primarily addresses bodily injury, property damage, and completed operations. Therefore, the correct answer is libel and slander.

Front

What type of harm does Coverage B of the CGL address?

Back

Reputational or rights-based harm

Answer explanation

Coverage B of the CGL specifically addresses reputational or rights-based harm, which includes issues like defamation or invasion of privacy, distinguishing it from bodily injury or property damage.

Front

What is the purpose of Coverage C in the CGL?

Back

To provide no-fault medical payments for third parties

Answer explanation

Coverage C in the CGL provides no-fault medical payments for third parties, ensuring that medical expenses are covered regardless of liability, which distinguishes it from other coverages that address legal liabilities or property damage.

Front

Which of the following is an example of an insured contract under the CGL?

Back

A lease agreement

Answer explanation

A lease agreement is considered an insured contract under the Commercial General Liability (CGL) policy, as it typically involves liability assumed by the lessee. The other options do not qualify as insured contracts.

Front

What is the key difference between an occurrence form and a claims made form in the CGL?

Back

Occurrence form covers claims based on when the injury occurs, while claims made form covers claims based on when the claim is filed.

Answer explanation

The key difference is that an occurrence form covers claims based on when the injury occurs, while a claims made form covers claims based on when the claim is filed. This distinction is crucial for understanding coverage timelines.

Front

What is the retroactive date in a claims made policy?

Back

The earliest date an injury can occur and still be covered

Answer explanation

The retroactive date in a claims made policy is the earliest date an injury can occur and still be covered. This means that claims for injuries occurring before this date will not be accepted.

Front

What is the duration of the basic extended reporting period (ERP) for occurrences reported during the policy period?

Back

5 years

Answer explanation

The basic extended reporting period (ERP) for occurrences reported during the policy period is 5 years. This allows policyholders to report claims that arise after the policy has expired.

Front

Which of the following is a common exclusion under Coverage A of the CGL?

Back

Expected or intended injury

Answer explanation

The correct choice, 'Expected or intended injury', is a common exclusion under Coverage A of the CGL, as it does not cover injuries that the insured intended to cause.

Front

Which of the following is excluded under Coverage B of the CGL?

Back

Knowing violations

Answer explanation

Knowing violations are excluded under Coverage B of the CGL, as they involve intentional acts. In contrast, copyright infringement and libel/slander are covered, while medical payments fall under a different section.