What is a key purpose of the Commercial General Liability (CGL) policy?

The key purpose of the Commercial General Liability (CGL) policy is to protect businesses from claims related to personal and advertising injury. This includes coverage for bodily injury, property damage, and other liabilities that may arise during the routine operations of a business. Personal injury claims can involve slander or libel, where an individual or entity is accused of causing harm to someone’s reputation through their advertising or other business activities. By including protection against these types of claims, the CGL policy provides essential coverage that helps businesses manage risks associated with their marketing and public relations efforts, as well as their general operations.

Other options presented address different types of coverage not included in a standard CGL policy. Equipment breakdowns are typically covered under specialized policies or endorsements rather than the CGL. Life insurance benefits are unrelated to commercial liability and serve a different purpose altogether. Coverage for business auto accidents falls under commercial auto insurance policies, which specifically address automobile-related claims.