What does a Commercial General Liability (CGL) policy primarily protect against?

• A. Damage to business property
• B. Injuries to third parties and damages
• C. Employee-related accidents
• D. Natural disasters affecting business operations

Answer: (B)

A Commercial General Liability (CGL) policy is designed to protect businesses against claims of bodily injury and property damage that occur on their premises or as a result of their operations. The primary focus is on injuries or damages suffered by third parties—people or entities that are not part of the business itself. This can include situations such as a customer slipping and falling in a store or someone being injured by a product manufactured by the business.

The significance of this protection lies in its ability to cover legal costs, settlements, and judgments that arise from such claims. This helps ensure that a business can operate without the crippling financial burden that could result from lawsuits alleging injury or damage.

The other options do not reflect the primary focus of a CGL policy. For instance, damage to business property is typically covered under commercial property insurance, not a CGL. Employee-related accidents fall under workers' compensation insurance, which specifically covers injuries to employees while performing work-related duties. Lastly, natural disasters affecting business operations would generally be covered by specific property insurance or disaster coverage, rather than a CGL, which does not address losses stemming from external catastrophic events.