What are the three parts of Commercial General Liability insurance?

Commercial General Liability (CGL) insurance is designed to protect businesses from a variety of claims, and understanding its structure is crucial for those in the insurance field. The three main components of CGL insurance are correctly identified in the choice given. The correct answer focuses on the essential categories that CGL insurance covers.

The first part, liability, refers to the legal responsibility of a business for causing harm to others, which includes both bodily injury and property damage claims. The second part, personal injury, encompasses non-physical injuries such as slander, libel, and invasion of privacy. Lastly, medical pay provides coverage for medical expenses incurred by others due to injuries sustained on the insured’s premises or as a result of their operations, regardless of fault.

The other options, while they do reference important concepts found in insurance, do not accurately summarize the three parts specifically laid out in a Commercial General Liability policy. For instance, property damage and bodily injury are indeed crucial concepts in CGL insurance but are not broken into the defined structural parts like liability and personal injury. Similarly, professional liability and errors and omissions pertain to different coverage types entirely, which are more about risks associated with professional services rather than the general operations of a business.

By understanding