The answer to the question is (c) No, the CGL excludes BI (Bodily Injury) and PD (Property Damage) claims based on contractual liability. In this scenario, the claim is based on an assumed contract, which falls under contractual liability.
Under a Commercial General Liability (CGL) insurance policy, the coverage typically extends to bodily injury and property damage claims arising from non-contractual liability, such as negligence. However, CGL policies generally exclude coverage for claims that arise from contractual liability, including claims based on assumed contracts.
In this case, since the claim is based on an assumed contract, the CGL insurance policy would not cover the insured's claim. The exclusion for BI and PD claims based on contractual liability applies, and the insured would need to seek coverage through other means, such as contractual indemnification or a separate contract liability insurance policy.
Therefore, option (c) is the correct answer: No, the CGL excludes BI and PD claims based on contractual liability.