Property and Casualty Insurance Practice Exam

What does CGL stand for in insurance terminology?

1. Comprehensive General Liability

2. Commercial General Liability

3. Certified General Liability

4. Contractor General Liability

The correct answer is: Commercial General Liability

CGL stands for Commercial General Liability in insurance terminology. This type of insurance policy is designed to protect businesses from a range of liability risks, primarily those associated with bodily injury, property damage, and personal and advertising injury that may occur during the normal operations of a business. Commercial General Liability insurance stems from the need for businesses to mitigate the financial impact of claims that could arise from everyday operations, such as slips and falls on business premises, damage to a third party’s property, or lawsuits related to advertising content. This coverage is crucial for all businesses, as it provides a fundamental layer of protection against unforeseen incidents that could otherwise lead to significant financial burdens. The other options represent variations or mischaracterizations of general liability insurance but do not accurately describe what CGL stands for in this context.