Los Angeles Claims Adjuster Property and Causality Practice Exam

Which scenario would likely be covered despite the CGL exclusion regarding contractual liability?

1. Injuries from a signed waiver

2. Injuries that happen post-agreement execution

3. Liability assumed through an oral agreement

4. Liability that the insured had originally

The correct answer is: Injuries that happen post-agreement execution

The scenario of injuries that happen post-agreement execution can indeed be covered under a Commercial General Liability (CGL) policy despite the exclusions regarding contractual liability. This is because the CGL policy typically covers bodily injury and property damage resulting from the insured's operations and products, regardless of whether the liability is based on a contractual agreement or not. If an injury occurs after the signing of a contract, it may not necessarily fall under the scope of contractual liability, especially if the injury arises from the insured's business operations or other activities separate from the contract. Understanding this aspect is crucial, as the intent of the CGL policy is to provide a safety net against claims that may arise in the course of conducting business, even when there are contracts in play. Contracts can specify liabilities, but they don’t always dictate the nature of all potential liabilities that may arise out of the operations tied to those contracts. Therefore, it is essential to assess the specific circumstances surrounding the incident to determine coverage eligibility. The other scenarios likely do not meet this coverage since they involve elements where contractual liability exclusions are more clearly applicable. For example, injuries stemming directly from a signed waiver or liability assumed through an oral agreement could be more directly tied to contractual obligations, which the CGL is