Claims Adjuster Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Commercial General Liability (CGL) coverage is specifically designed to protect businesses from financial losses arising from claims of bodily injury and property damage that occur as a result of their operations, products, or on their premises. This type of insurance typically covers legal fees, settlements, and medical expenses that may arise from such claims.

Bodily injury refers to physical harm caused to individuals, while property damage pertains to damage inflicted on someone else's property. Since these are common risks that businesses face in their everyday operations, CGL is a fundamental part of a comprehensive commercial insurance portfolio.

The other options represent different types of coverage or protections. Cybersecurity threats fall under cyber liability insurance, which is separate from general liability. Workers' compensation addresses employee injuries and illnesses that occur in the course of employment, while environmental damage often requires specialized environmental liability coverage. Thus, while those coverages are important for businesses, they do not fall under the umbrella of Commercial General Liability, which focuses primarily on bodily injury and property damage claims.