What types of damages are typically covered under a commercial general liability policy?

A commercial general liability (CGL) policy is designed to provide coverage for a range of liabilities that a business might face in the course of its operations. The correct answer indicates that a CGL policy typically covers bodily injury, property damage, and personal injury.

Bodily injury refers to physical harm inflicted on a person, which could lead to medical expenses, lost wages, and other related costs. Property damage includes damage to or destruction of someone else's property as a result of the business's operations. Personal injury extends beyond physical harm to encompass non-physical harms, such as slander, libel, or invasion of privacy, which can lead to legal claims against the business.

This combination of coverages ensures that businesses are protected against a broad spectrum of risks associated with everyday operations, from accidents that cause bodily injuries to claims arising from damaging someone’s reputation.

Understanding this coverage is crucial for business owners and independent adjusters, as it informs how claims are assessed and what policyholders can expect in terms of liability protection in various situations.