Los Angeles Claims Adjuster Property and Causality Practice Exam

What is a key aspect of premises coverage in CGL?

1. Coverage of operations while in progress

2. Protection against work-related accidents

3. Coverage of occurrences on designated properties

4. Protection from environmental claims

The correct answer is: Coverage of occurrences on designated properties

The key aspect of premises coverage in a Commercial General Liability (CGL) policy is that it provides coverage for occurrences that happen on designated properties. This means that if an incident occurs on a particular business property, which can include things like slip and fall accidents or property damage, the CGL policy will typically cover the associated legal and settlement costs. This aspect is crucial because it directly addresses liability arising from the physical location where business operations are conducted. It protects the insured against claims related to accidents or harm that occurs due to circumstances on their premises. While the other aspects mentioned, such as coverage of operations in progress or protection against work-related accidents, are certainly relevant to general liability and might intersect with premises coverage, they do not specifically capture the essence of what premises coverage is concentrated on—namely, the protections linked directly to the physical property the business owns or operates. Similarly, while environmental claims might be an important consideration in broader liability conversations, they are not a direct component of standard premises coverage in CGL.