What is the purpose of Commercial General Liability (CGL) coverage?

The purpose of Commercial General Liability (CGL) coverage is primarily to cover risks associated with accidental bodily injury and property damage that may arise from business operations, including negligence. This type of insurance is designed to safeguard businesses against claims that can lead to significant financial loss due to lawsuits resulting from such incidents.

CGL policies typically cover various situations where a business could be held liable, such as slips and falls on the premises, accidental damage to someone else’s property, or injuries caused by products sold or manufactured by the business. This broad protection is essential for businesses as it addresses one of the most common and serious exposures they face.

The other choices do not accurately reflect the comprehensive nature of CGL coverage. While personal injury claims may be included under the broader umbrella, CGL is much more expansive than that, addressing a wide range of potential liabilities. Similarly, CGL coverage does not pertain to insuring creative works or protecting intellectual property copyrights, which fall under different types of insurance policies.