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.