How many parts does the Commercial General Liability insurance policy cover?

The Commercial General Liability (CGL) insurance policy typically covers three main parts, which are crucial for understanding the comprehensive nature of this insurance. These components include:

1. Bodily Injury Liability: This part covers claims made by a third party for injuries suffered due to the insured's business operations, including accidents that occur on the business premises or due to the business’s products.

2. Property Damage Liability: This section provides coverage for damage to a third party's property resulting from the insured's business activities, again whether it’s on their premises or caused by their products.

3. Personal and Advertising Injury Liability: This coverage is designed to protect against claims of non-physical injuries such as defamation, copyright infringement, or claims related to advertisements that result in injury to a person or damage to their reputation.

Understanding these three components is essential for anyone working within the framework of commercial liability insurance, as they collectively ensure that businesses are protected against a wide range of potential legal liabilities. This structure is central to the CGL policy, and recognizing these parts can greatly aid in risk management and insurance utilization for businesses.