What must the insured have to ensure the insurer is obligated to pay under a CGL policy?

To ensure that the insurer is obligated to pay under a Commercial General Liability (CGL) policy, the insured must demonstrate a legal obligation to pay damages. This means that the insured is responsible for coverage only when they have a valid claim, typically established through a legal proceeding or settlement that confirms their liability for damages arising from bodily injury or property damage caused by their business operations.

In the context of CGL insurance, a legal obligation usually arises from a court judgment or a settlement agreement. This legal basis is crucial because the insurer's commitment to cover costs is contingent upon the insured being found liable for damages to third parties. Therefore, having a legal obligation to pay is a foundational requirement for the insurer’s duty to cover that liability.

While timely reporting of damages, completion of claim forms, and other procedural aspects may play important roles in the handling of claims, they do not inherently create the insurer's obligation to pay. The essence lies in the legal relationship regarding liability, which must be established first.