Comprehensive General Liability
Comprehensive General Liability Insurance
and Broad-Form Comprehensive General Liability
Comprehensive General Liability coverage provides protection against bodily injury
and property damage claims arising from the operations of a contractor or tenant.
This type of policy provides coverage for premises and operations, use of independent
contractors, and products and completed operations. Major exclusions include liability
arising out of the ownership, maintenance or use of watercraft, aircraft and automobiles.
Other insurance policies normally cover these exposures.
The Agency should require a Comprehensive General Liability insurance policy from
all contractors and tenants. This form usually has an annual aggregate limit for products
and completed operations losses.
The Broad Form Comprehensive General Liability endorsement is a composite endorsement
which includes 13 “add-on” items that expand the coverage of the Comprehensive General
Liability Coverage. Add-ons include personal injury, contractual liability and broad
form property damage. This form is being phased out and most companies are now issuing
policies on the Commercial General Liability form described below.
Commercial General Liability Insurance
Commercial General Liability coverage was introduced in 1986. This form combines the
two forms described in 1. above. However, it limits all loss payments to two aggregate
limits, one for products and completed operations and one for all other losses. This
form can be written on either a “claims-made” or an “occurrence” basis. The name of
this form is similar to that of the older form used above, so care must be used in
distinguishing between the names of these forms. Also, some policies even eliminate
the aggregate limit. The aggregate limit is the total amount the policy will pay in
one year. Prior claims can exhaust the amount of insurance available to pay on a current
claim. It is important to ask if there are any claims pending, if the policy has an
aggregate. If prior claims paid or filed exceed the policy annual aggregate, you are
not receiving any coverage at all.