Who Is Covered Under A Commercial General Liability Policy?

Who Is Insured Under A Commercial General Liability Policy?

A Commercial General Liability policy is provided for business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability. Commercial general liability Insurance is one of the most common policies used today for businesses which is why understanding who is covered under your policy is so important.

Who Is Actually Covered By A Typical Commercial General Liability Policy?

1. An Individual – you and your spouse are insureds but only with respect to the conduct of the business of which you are sole owner
2. A partnership, limited liability partnership/joint venture – you as well as your members, partners, and their spouses are also insured but only with respect to the conduct of your business. Managers are also insured but only with respect to their duties as managers.
3. A limited liability company – you as well as your members are also insureds but only with respect to the conduct of your business. Managers are also insureds but only with respect to their duties as managers
4. An organization other than those listed previously – you are an insured. Your “executive officers” and directors are insureds but only with respect to their duties as your officers or directors. Your shareholders are also insureds but only with respect to the liability as shareholders.
5. A trust – you are an insured. Your trustees are also insureds but only with respect to their duties as trustees.

Others Who Can Be Considered Insureds Under A Typical Commercial General Liability Insurance Policy

1. Your volunteer workers – only while performing duties related to the conduct of your business.
2. Your employees other than noted above ( managers ,executives) but only for acts within the scope of their employment by you or while performing duties related to the conduct of you
   • However – none of these employees or volunteer workers are insureds for: bodily injury or personal advertising injury to you, your partners, members, co employees, or other volunteer workers. Nor to the spouse, child, parent broker or sister of the co employee or volunteer worker.
   • Nor or property damage to property owned, occupied or used by rented to or in care custody or control of you.
3. Any person or organization acting as your real estate manager.
4. Any person or organization having temporary custody of your property if you die.
5. Your legal representative, if you die but only with respect to duties as such they will have all your rights and duties under the policy.

Also, any organization you newly acquire or form other than a partnership, limited liability partnership/joint venture or limited liability company over which you maintain ownership of majority interest will qualify as a named insured if there are no other similar insurance available to that organization – with qualifications.

To Learn More About Commercial General Liability Insurance Speak To An ALIGNED Insurance Advocate Or Connect With Us Today At www.alignedinsurance.com