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Insurance & Bondingaka: CGLaka: general liability

Commercial General Liability (CGL)

In Plain English

The basic insurance policy that protects a contractor if someone is hurt or property is damaged because of their work.

Definition

Commercial general liability insurance is the standard liability policy carried by contractors that covers third-party bodily injury, property damage, personal injury, and advertising injury arising from the contractor's operations, products, and completed work. CGL policies are structured with per-occurrence limits, general aggregate limits, and a products/completed operations aggregate. Most construction contracts require a minimum CGL policy as a condition of award.

Example

A plumbing subcontractor's CGL policy responds when a pipe they installed leaks and damages a tenant's equipment on the floor below.

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