Commercial general liability, commonly referred to as Commercial General Liability, is a broad policy for businesses that covers a wide variety of exposures that are not specifically excluded. While Commercial General Liability forms are generally similar, it is important to read carefully the included coverage and exclusions. Common coverage includes:Premises and OperationsPremises and Operations coverage protects the policyholder from claims due to negligent acts associated with the business premises and normal business operations (often excluding automobile).
Products and Completed Operations
This coverage has two parts: products and completed operations. Products coverage protects the insured against claims arising from the manufacturing, selling, handling, or distribution of products. In order for there to be coverage, the product must have been sold and relinquished.
Operations coverage protects against claims arising from completed operations by the insured. For example, if a plumber installs the plumbing for a new restaurant and due to poor installation the restaurant floods, the completed operations coverage pays the damages on the insured’s behalf. As with products coverage, the operations must have been abandoned. That is, the work must have been completed and not in progress.
Independent Contractors
This coverage is also referred to as “Owners and Contractors Protective” insurance. It covers the insured for the negligent acts of a contractor or subcontractor the insured hires.