Does General Liability Cover Property Damage?

Commercial general liability (CGL) Coverage A commonly addresses a claim that your business caused physical damage to another party’s property. The ISO CG 00 01 specimen form ties coverage to an occurrence in the policy period and territory, and sets out exclusions for property in your care, property you own or rent, and property on which you are working. Those details can change the outcome even when the loss arose from business activity.

CGL is liability coverage, not a substitute for commercial property insurance on your own building, inventory, or equipment. A policy may also contain endorsements that change the standard form. Check the definition of property damage, the occurrence wording, exclusions and exceptions, limits, deductible, and any endorsements in the quote and issued forms. The California Department of Insurance describes policy language, exclusions, and endorsements as key to determining whether a commercial property loss is covered; the same careful reading is important when assessing liability wording.