Commercial general liability insurance

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Commercial general liability insurance is a broad type of insurance policy which provides liability insurance for general business risks.

Commercial General Liability (CGL) is the specific name for a policy of this type in the United States insurance market. It is the "first line" of coverage that a business typically purchases,[1] and covers many of the common risks that can happen to any type of business, such as bodily injury or property damage on the business premises or due to the business operations, personal and advertising injury, and medical payments.[2] As with other types of liability insurance, CGL insurance normally imposes on issuing insurers duties both to defend and to indemnify insureds with respect to covered claims.

CGL insurance is generally categorized as an "all-risks" type of insurance, under which it provides coverage for risks unless specifically excluded. Specific risks that are normally excluded from CGL coverage include professional services, pollution, liquor, automobile liability, and directors and officers liability,[2] and separate insurance policies are available to cover these situations. A wide variety of other coverage exclusions, extensions, limitations, and other policy terms and conditions may be included by endorsements to a CGL policy. A CGL insurance includes both public liability and product liability insurance.

Construction defects coverage[edit]

Whether or not general liability insurance covers construction defects or "faulty workmanship" is a matter of some debate, as some insurers have viewed poor workmanship as a risk that is covered by a surety bond rather than an insurance policy given that a construction professional may have some influence (through attention to detail, skill, and effort) over whether such a defect occurs.[3][4] Though in certain jurisdictions manufacturers of component parts continue to have coverage under a Commercial General Liability policy if their component part harms a finished product, in this case homeowners pursuing damages to a home caused by defective windows.[5]


  1. ^ Abraham, Kenneth S. (2001-01-01). "The Rise and Fall of Commercial Liability Insurance". Virginia Law Review. 87 (1): 85–109. doi:10.2307/1073895. JSTOR 1073895.
  2. ^ a b "Commercial General Liability Insurance". III. Retrieved 2016-01-19.
  3. ^ "Construction Defect Insurance Coverage Remains Difficult To Predict |". Retrieved 2016-09-17.
  4. ^ "Construction Defect and Occurrence: Still Crazy after All These Years |". Retrieved 2016-09-17.
  5. ^ Schellinger, Susan G. (30 September 2017). "Recent Federal Appeals Court Decision on Insurance Coverage Impacts Manufacturers". The National Law Review. Davis Kuelthau. Retrieved 7 October 2017.