View source for Definition:Commercial general liability (CGL)

📋 '''Commercial general liability (CGL)''' refers to the standard coverage form — originally developed by the [[Definition:Insurance Services Office (ISO) | Insurance Services Office (ISO)]] — that provides businesses with protection against third-party [[Definition:Bodily injury | bodily injury]], [[Definition:Property damage | property damage]], and [[Definition:Personal and advertising injury | personal and advertising injury]] [[Definition:Claim | claims]] arising out of their operations, products, or premises. The CGL form is the backbone of [[Definition:Commercial lines | commercial lines]] [[Definition:Liability insurance | liability]] underwriting in the United States and serves as the starting point from which carriers build tailored programs through [[Definition:Endorsement | endorsements]] and manuscript modifications. Nearly every commercial [[Definition:Insurance policy | policy]] portfolio begins with a CGL form, making it one of the most widely issued and litigated coverage documents in the industry.

⚙️ The standard CGL policy is divided into three main coverage sections — Coverage A for bodily injury and property damage liability, Coverage B for personal and advertising injury liability, and Coverage C for [[Definition:Medical payments coverage | medical payments]]. It can be written on an [[Definition:Occurrence-based policy | occurrence]] basis, which covers events happening during the policy period regardless of when the claim is made, or on a [[Definition:Claims-made policy | claims-made]] basis, which responds only to claims first reported during the policy period. Key exclusions — such as those for [[Definition:Professional liability insurance | professional services]], [[Definition:Pollution liability insurance | pollution]], [[Definition:Workers' compensation insurance | employment-related]] injuries, and [[Definition:Intentional act | intentional acts]] — shape the boundary between what the CGL covers and what requires separate, specialized policies. [[Definition:Underwriter | Underwriters]] evaluate exposures using classification codes, revenue, payroll, and square footage to develop [[Definition:Premium | premiums]] appropriate to each risk.

💡 The CGL form's significance extends well beyond the policy document itself; it functions as a shared language that connects [[Definition:Insurance broker | brokers]], [[Definition:Insurance carrier | carriers]], [[Definition:Claims adjuster | adjusters]], and defense counsel across the commercial insurance ecosystem. Court interpretations of CGL provisions in one jurisdiction ripple through [[Definition:Underwriting | underwriting]] guidelines and [[Definition:Pricing | pricing]] models nationwide, meaning that a single landmark ruling — on construction-defect coverage or assault-and-battery exclusions, for instance — can shift market behavior for years. For [[Definition:Insurtech | insurtech]] companies seeking to automate small-business quoting or [[Definition:Binding authority agreement | binding]], deep familiarity with CGL form structure and ISO edition history is essential to building products that carriers will trust.

'''Related concepts'''
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* [[Definition:Commercial general liability (CGL) insurance]]
* [[Definition:Insurance Services Office (ISO)]]
* [[Definition:Occurrence-based policy]]
* [[Definition:Claims-made policy]]
* [[Definition:Commercial lines]]
* [[Definition:Endorsement]]
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