What is the basic limit for Fire Damage Liability under the CGL?

The basic limit for Fire Damage Liability under the Commercial General Liability (CGL) policy is set at $500,000. This coverage provides a specific limit for damage caused by fire to premises that the insured does not own, lease, or occupy, ensuring that there is adequate protection against potential financial losses arising from such incidents.

Understanding the limits of Fire Damage Liability is crucial for insurers and insured parties alike, as it helps in assessing the extent of coverage needed for various properties and liability exposures. The distinction of this limit underscores the importance of maintaining sufficient coverage to address potential lawsuits or claims resulting from fire damage. This is particularly relevant for businesses that may operate in environments where fire hazards are pertinent, such as restaurants or manufacturing facilities.

The figure clearly indicates a balance between risk and affordability in the insurance market, offering policyholders the peace of mind that they are protected against significant fire-related liabilities without incurring excessively high premiums.