Key Takeaways
- Commercial General Liability (CGL) protects businesses from third-party claims for bodily injury and property damage
- CGL Coverage A covers bodily injury and property damage; Coverage B covers personal and advertising injury
- Products-completed operations coverage protects against claims from sold products or completed work
- Professional liability (E&O) coverage is separate from CGL and covers professional service errors
- Umbrella and excess liability policies provide additional coverage above primary policy limits
Last updated: January 2026
Connecticut General Liability Insurance
Commercial General Liability (CGL) Overview
CGL insurance is the foundation of business liability protection in Connecticut. It covers claims arising from business operations, premises, and products.
CGL Coverage Parts
Coverage A: Bodily Injury & Property Damage
| What's Covered | Examples |
|---|---|
| Third-party bodily injury | Customer slips and falls in store |
| Third-party property damage | Employee damages client's property |
| Legal defense costs | Attorney fees for covered claims |
| Products liability | Customer injured by sold product |
| Completed operations | Work performed causes later injury |
Coverage B: Personal & Advertising Injury
Covers intentional torts and advertising-related claims:
- Libel and slander - Defamatory statements
- False advertising - Misleading product claims
- Copyright infringement - Using protected material
- Wrongful eviction - Improper tenant removal
- Invasion of privacy - Unauthorized use of likeness
Coverage C: Medical Payments
- Pays medical expenses for injured third parties
- No-fault coverage (pays regardless of liability)
- Lower limits (typically $5,000 - $10,000)
- Goodwill coverage to avoid lawsuits
Key CGL Terms
Occurrence vs. Claims-Made
| Trigger | Description | Best For |
|---|---|---|
| Occurrence | Covers claims from incidents during policy period (whenever filed) | Most CGL policies |
| Claims-Made | Covers claims filed during policy period (whenever occurred) | Professional liability |
Products-Completed Operations
Protects against claims arising from:
- Products sold, manufactured, or distributed
- Work completed away from premises
- Injuries/damage occurring after work is done
Premises-Operations
Covers claims arising from:
- Day-to-day business operations
- Conditions on business premises
- Activities of employees during work
CGL Exclusions
Standard CGL policies do NOT cover:
| Exclusion | Coverage Alternative |
|---|---|
| Workers' compensation | WC policy |
| Auto liability | Commercial auto policy |
| Professional errors | E&O/Professional liability |
| Intentional injury | None (uninsurable) |
| Pollution | Environmental liability policy |
| Employment practices | EPLI policy |
Professional Liability (Errors & Omissions)
What It Covers
- Negligent acts in professional services
- Errors in advice or recommendations
- Failure to perform professional duties
- Claims-made trigger typically used
Who Needs It
- Insurance agents and brokers
- Accountants and CPAs
- Attorneys
- Consultants
- Healthcare providers
- Real estate professionals
Umbrella and Excess Liability
Umbrella Liability
- Provides additional limits above underlying policies
- May cover some claims not covered by primary policies
- Broader coverage with own insuring agreement
Excess Liability
- Strictly follows underlying policy terms
- Pure additional limits only
- No coverage beyond underlying policy scope
| Feature | Umbrella | Excess |
|---|---|---|
| Coverage scope | Broader | Same as underlying |
| Drop-down coverage | Yes, may apply | No |
| Self-insured retention | Often applies | Follows underlying |
Connecticut Business Liability Considerations
Industry-Specific Requirements
- Construction: Higher limits often required for contracts
- Healthcare: Professional liability mandatory
- Retail: Products liability important
- Service: E&O coverage essential
Certificate of Insurance
- Often required by clients/landlords
- Shows proof of coverage
- Lists additional insureds when required
Exam Tip: Know the difference between CGL Coverage A (bodily injury/property damage) and Coverage B (personal and advertising injury). Also understand that professional errors require separate E&O coverage.
Test Your Knowledge
Which CGL coverage part covers libel, slander, and false advertising claims?
A
B
C
D
Test Your Knowledge
An insurance agent gives incorrect advice that causes a client financial loss. Which type of insurance would cover this claim?
A
B
C
D
Test Your Knowledge
What is the primary difference between umbrella liability and excess liability coverage?
A
B
C
D