When it comes to insurance policies, understanding the insuring agreement is crucial. This is the section of the policy that outlines what risks are covered and what is excluded. In this article, we will take a closer look at the insuring agreement for CGL insurance.
CGL (Commercial General Liability) insurance is a type of insurance policy that provides coverage for businesses against liability claims for bodily injury and property damage. A CGL policy typically includes three sections: the insuring agreement, the exclusions section, and the conditions section.
The insuring agreement of a CGL policy outlines what the insurer will cover. It typically states that the insurer will pay for damages the insured is legally obligated to pay because of bodily injury or property damage caused by an occurrence. An occurrence is defined as an accident, including continuous or repeated exposure to the same harmful conditions.
The insuring agreement also includes coverage for personal and advertising injury. This can include claims of slander, libel, or copyright infringement.
It is important to note that the insuring agreement only provides coverage for liability claims that are covered under the policy. This means that if the claim is not covered under the policy, the insurer will not pay for damages.
CGL policies typically have limits on coverage. The insuring agreement will specify what the limits are. For example, a policy may have a limit of $1 million per occurrence and $2 million aggregate.
In addition to the insuring agreement, it is important to review the exclusions section of the policy. This section outlines what is not covered under the policy. Typical exclusions include intentional acts, product liability, and pollution.
The conditions section of the policy outlines the obligations of the insurer and the insured. This section typically includes requirements for the insured to cooperate with the insurer, notify the insurer of claims, and provide documentation to support the claim.
In summary, the insuring agreement of a CGL policy is an essential part of the policy that outlines what risks are covered and what is excluded. Understanding the insuring agreement is crucial in determining whether a claim is covered under the policy. It is recommended that businesses consult with an experienced insurance agent to ensure that they have the appropriate coverage for their needs.