What is the status of the backhoe owned by Smith Construction Company under the Commercial General Liability (CGL) Coverage Form?

The correct status of the backhoe owned by Smith Construction Company under the Commercial General Liability (CGL) Coverage Form is that it is excluded as property owned by Smith. This is in line with the terms of most CGL policies, which generally exclude coverage for property owned by the insured. This exclusion exists because the purpose of the CGL is to protect against liability for damages to third-party property and bodily injury, rather than to cover the insured's own property.

In this scenario, the backhoe is owned by Smith, meaning it does not qualify for coverage under the CGL for any damages related to its use or ownership. The policy is designed to limit exposure to the insurer by not covering claims that arise from the insured's own property, which includes both physical damage to said property and liability issues related to its use.

The other answer choices imply misunderstandings of the CGL policy structure. There's not a provision in the CGL that classifies the backhoe as covered property or applies specific coverage limits like $50,000, nor is it limited to liability coverage only, as liability related to owned property is excluded altogether. The focus on liability in the CGL emphasizes protection for third-party claims, rather than coverage for the insured's own assets