Question

Fire Damage Liability under the CGL would cover which:

i. tenant negligently damages building in C.C.C.
ii. property next door damagediii. tenants own property damaged

a. i, ii
b. i only
c. ii only
d. i, ii, iii

Answer 1

The fire damage liability coverage under a standard Commercial General Liability (CGL) policy typically covers damage by a tenant to the rented building itself but does not usually extend to the tenant's own property or adjacent properties. Option b is the correct answer.

Step-by-step explanation:

Under the standard Commercial General Liability (CGL) policy, fire damage liability specifically refers to the Fire Legal Liability Coverage, or what some policies refer to as 'damage to premises rented to you' coverage. This coverage is designed for tenants who lease or rent a space and are responsible for damages to that specific space. Typically, this coverage part of the CGL policy is meant to cover:

• Tenant negligently damages building in his or her care, custody, or control (C.C.C).

However, it generally does not cover:

• Damage to property next door
• Damage to the tenant's own property

Therefore, the correct answer to which fire damage liability under the CGL would cover is:

b. i only: Tenant negligently damages building in C.C.C.