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Jane, an interior designer, is helping her client Grace choose new curtains and furniture. While at Jane's office, Grace trips on some material and falls, breaking her arm. Which CGL coverage would help pay for Grace's resulting expenses?

A. Product Liability
B. Medical Payments
C. Operations Liability
D. Grace's homeowners insurance

User Calummm
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1 Answer

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Final answer:

Medical Payments coverage in a Commercial General Liability (CGL) policy is most likely to cover the medical expenses for Grace's injury sustained at Jane's office, as it offers no-fault coverage for bodily injury to non-employees.

Step-by-step explanation:

Jane, the interior designer, is responsible for maintaining a safe environment in her office for clients like Grace. When Grace trips and injures herself, Medical Payments coverage under a Commercial General Liability (CGL) insurance would typically be the part of the policy to respond to this type of accident. This component of CGL exists to cover medical expenses for bodily injury sustained by a non-employee, regardless of liability, and is a no-fault coverage.

It is an immediate form of payment to avoid litigation and more costly expenses that can arise from lawsuits. Product Liability would not apply as it covers damages due to a defective product that Jane might sell or supply. Operations Liability covers damages that occur as a direct result of the business operations, which may or may not include customer accidents, depending on the specifics of the policy. Lastly, Grace's homeowners insurance might provide some coverage, but it would typically be secondary to any liability or medical payments coverage that Jane's CGL policy provides.

User Jarosik
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