Which of the following best describes the coverage provided under a Commercial General Liability Policy?

Prepare for the IBABC Fundamentals of Insurance Exam with our detailed quizzes. Utilize flashcards and multiple-choice questions with hints and explanations to ace your exam!

The correct choice accurately reflects the nature of coverage under a Commercial General Liability (CGL) Policy, which primarily addresses bodily injury and property damage claims resulting from the insured's business operations. This means that if a third party suffers a physical injury or their property is damaged due to activities conducted by the business, the CGL policy would typically provide financial protection for legal claims and expenses related to those incidents.

The focus of the CGL is on protecting businesses from claims that may arise in the course of their standard operations, making it a fundamental component of commercial insurance. This coverage helps businesses manage the risk of lawsuits and claims that can arise unexpectedly as a result of their activities, thereby ensuring financial stability in potentially costly legal situations. Other options do not align with the comprehensive nature of a Commercial General Liability policy as they refer to more specific coverage types.

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