Final answer:
Commercial General Liability policies offer three coverages: bodily injury and property damage liability, personal and advertising injury liability, and medical payments. These coverages protect a business from various liability claims, while the premiums collected must cover claims, operational costs, and profits.
Step-by-step explanation:
Commercial General Liability Insurance Coverages
Commercial General Liability (CGL) policies are fundamental for businesses seeking protection against liability claims. These policies provide three essential coverages:
- Bodily injury and property damage liability - This coverage protects against claims of physical injury or property damage caused by the business's operations, products, or accidents on the business's premises.
- Personal and advertising injury liability - This part covers non-physical wrongs like slander, libel, wrongful eviction, or infringement of copyright resulting from the advertising of the business's goods or services.
- Medical payments - This aspect covers medical expenses for individuals injured on the business's premises or due to the business's operations, regardless of fault.
Moreover, the fundamental law of insurance dictates that the premiums collected must suffice to cover the insured's claims, the costs of running the company, and allow for the insurance firm's profits.