Los Angeles Claims Adjuster Property and Causality Practice Exam

What does CGL specify about coverage for bodily injury on the insured's premises?

1. It covers all liabilities

2. It only applies if the insured is present

3. It covers specified occurrences

4. It excludes any operations

The correct answer is: It covers specified occurrences

The Commercial General Liability (CGL) policy specifies that coverage for bodily injury on the insured's premises is limited to specified occurrences. This means that the policy provides protection against certain types of incidents that cause bodily injury, as outlined in the coverage terms. It is essential to understand that the coverage is not blanket or absolute; it is tailored to include particular situations that are explicitly enumerated in the policy. This specification creates clarity in what incidents are eligible for coverage, ensuring that both the insured and the insurer understand the limits of the protection provided. This preventive measure is crucial in avoiding potential disputes later regarding what is covered. Other options suggest broader interpretations. For instance, the idea that all liabilities are covered is misleading, as CGL policies clearly delineate the situations that trigger coverage. Similarly, the suggestion that coverage applies only when the insured is present would inadequately represent the purpose of the policy since many incidents could be covered regardless of the insured's physical presence on the premises. Lastly, asserting that it excludes any operations also misrepresents the nature of CGL coverage, which can include operations under specific conditions as stated in the policy.