The commercial general liability (CGL) policy is a standard insurance package purchased by businesses to protect them against third-party claims. It covers a wide range of risks and liabilities that a business may face, including bodily injury, property damage, advertising injury, and personal injury. One key component of the CGL policy is the Coverage B insuring agreement, which provides protection against personal and advertising injury claims.
Personal and advertising injury claims arise from non-physical injuries that may be caused by a business’s advertising or other business operations. Some common examples include defamation, copyright infringement, invasion of privacy, and false arrest. Coverage B of the CGL policy is designed to protect businesses against such claims.
To trigger coverage under the CGL Coverage B insuring agreement, three key elements must be present:
1. The claim must arise from personal and advertising injury: This means that the claim must involve a non-physical injury that is caused by the business’s advertising or other business operations. This could include anything from a false advertisement to a misleading statement made by a sales representative.
2. The injury must be caused by an offense committed during the policy period: The policy period is the time period during which the CGL policy is in effect. If the injury occurred before or after this period, it will not be covered by the CGL policy.
3. The offense must occur in the course of the business’s operations: This means that the injury must be related to the business’s normal operations, rather than a personal matter or something unrelated to the business.
It’s important for businesses to carefully review their CGL policy and understand the extent of coverage provided under Coverage B. While the coverage can provide valuable protection against personal and advertising injury claims, it’s important to understand the limitations and exclusions of the policy as well.
For example, the CGL policy typically excludes intentional acts, meaning that if a business intentionally causes personal and advertising injury, it will not be covered under the policy. Additionally, certain activities such as intellectual property infringement may require specialized coverage beyond what is provided in the standard CGL policy.
In conclusion, the Coverage B insuring agreement of the CGL policy provides valuable protection against personal and advertising injury claims, but businesses must understand the requirements for triggering coverage and the exclusions and limitations of the policy. By carefully reviewing their CGL policy and working with a knowledgeable insurance agent, businesses can ensure that they have the appropriate coverage to protect against a wide range of risks and liabilities.