What is an example of a commercial general liability coverage?

Commercial General Liability (CGL) coverage is designed to protect businesses from a wide range of liability risks, primarily those that arise from bodily injury or property damage caused by the business's operations, products, or accidents occurring on the business premises.

The coverage for property damage liability specifically addresses situations where a third party suffers damage to their property due to the actions or negligence of the insured business. For instance, if a contractor accidentally damages a neighboring property while performing construction work, the property damage liability portion of a CGL policy would provide coverage for the costs associated with repairs or replacements necessary to rectify that damage. This is a fundamental aspect of CGL policies, making it a primary example of this type of coverage.

Other options like Directors and Officers Liability, Medical Malpractice Liability, and Professional Liability Insurance are specialized forms of insurance tailored to protect against specific types of risks related to governance, medical practice, and professional services, respectively. They do not fall under the general liability umbrella, which primarily focuses on broader business operations that might cause harm to third parties.