As a professional, I understand the importance of creating content that not only informs but also ranks well in search engines. In this article, we will explore the insuring agreement in Commercial General Liability (CGL) insurance.

The insuring agreement is the heart of any insurance policy, and a CGL policy is no exception. It outlines the coverage provided by the policy and applies to claims made against the insured during the policy period. The insuring agreement in a CGL policy is divided into two parts: Coverage A and Coverage B.

Coverage A: Bodily Injury and Property Damage

The first part of the insuring agreement, Coverage A, provides coverage for bodily injury and property damage liability. This means that if a third party is injured or their property is damaged as a result of the insured’s business operations, the policy will provide coverage for the damages.

For example, if a customer slips and falls in a store owned by the insured, the policy will provide coverage for any damages the customer may be entitled to for their injuries. Similarly, if the insured’s business operations cause damage to a third party’s property, the policy will provide coverage for the damages.

Coverage B: Personal and Advertising Injury

The second part of the insuring agreement, Coverage B, provides coverage for personal and advertising injury liability. This includes claims related to libel, slander, false arrest, invasion of privacy, and copyright infringement.

For example, if a competitor sues the insured for using their copyrighted material in advertising, the policy will provide coverage for any damages the insured may be liable for. Similarly, if the insured’s advertising is found to be defamatory and causes harm to a third party, the policy will provide coverage for the damages.

In conclusion, the insuring agreement in a CGL policy is a crucial component of the policy that outlines the coverage provided for bodily injury, property damage, personal, and advertising injury liability. As a business owner, it is essential to understand the coverage provided by the policy and ensure that it is tailored to suit the specific risks and needs of your business.