Which situation would typically require a separate insurance policy outside of CGL coverage?

The situation involving automobile liability for commercial vehicles necessitates a separate insurance policy outside of a Commercial General Liability (CGL) coverage. CGL primarily covers risks related to bodily injury and property damage arising from general operations, such as slip-and-fall accidents or property damage caused by business activities. However, automobile liability involves specialized risks associated with the operation of vehicles used for business purposes, which require dedicated coverage.

Auto liability policies provide coverage for injuries and damages resulting specifically from the use of vehicles, something that CGL does not encompass. As vehicles have unique risk profiles and legal requirements, such as minimum liability limits mandated by the law, businesses that own or use vehicles for commercial operations need to secure auto liability insurance separately to ensure adequate protection and compliance.

This distinction is important as it helps businesses manage risk effectively, ensuring that they have the appropriate types of coverage tailored to their operations.