What does the abbreviation "CGL" stand for in insurance?

• A. Comprehensive General Liability
• B. Commercial General Liability
• C. Contractual General Liability
• D. Comprehensive Guarantee Liability

Answer: (B)

The abbreviation "CGL" stands for Commercial General Liability. This type of insurance is essential for businesses as it provides coverage for a variety of potential claims, including bodily injury, property damage, and personal and advertising injury resulting from the business's operations, products, or premises.

Commercial General Liability insurance is designed to protect policyholders from the financial burden of legal defense costs or settlements related to claims made against them in the course of their business activities. It typically covers incidents that occur on the operating premises or as a result of the conducted business and ensures that businesses can operate with reduced risk of facing significant financial loss due to litigation or liability claims.

The other options do not accurately describe the CGL. "Comprehensive General Liability" suggests a broader, possibly outdated classification that does not specifically align with the terminology used in current insurance practice, while "Contractual General Liability" is not a standard term used in the industry. "Comprehensive Guarantee Liability" is also not recognized and does not fit within standard insurance classifications. Thus, Commercial General Liability is the best and most accurate term in this context.