Does General Liability Cover Business Property?

A CGL policy is liability coverage; it does not generally insure the policyholder’s own building, furniture, inventory, or equipment against direct physical loss. The California Department of Insurance describes commercial property coverage as protecting business buildings and business personal property, while CGL addresses liability exposures. A business owners policy can package property and liability coverage, but the two coverage parts remain governed by their separate terms and limits.

Check whether the business owns or leases the building, what property values are insured, whether property is at multiple locations, and how losses are valued. Review covered causes of loss, exclusions, deductibles, coinsurance, and any off-premises or transit extensions. Do not assume that a CGL quote includes property coverage unless the declarations and property forms show it.