Key Takeaways
- Commercial General Liability (CGL) policies cover bodily injury, property damage, personal injury, and advertising injury
- CGL policies can be written on occurrence or claims-made basis
- Products-completed operations coverage is included in the CGL for product liability claims
- Personal and advertising injury coverage includes libel, slander, false arrest, and copyright infringement
- Tennessee follows standard ISO CGL forms with state-specific endorsements as needed
Last updated: January 2026
General Liability Insurance
Commercial General Liability (CGL) insurance is essential coverage for Tennessee businesses.
CGL Coverage Parts
The CGL policy has three main coverage sections:
Coverage A - Bodily Injury and Property Damage Liability
| Coverage | Description |
|---|---|
| Bodily Injury | Physical injury, sickness, disease, death |
| Property Damage | Physical damage to tangible property |
| Occurrence | An accident, including continuous exposure |
| Coverage Trigger | Occurrence during policy period |
Coverage B - Personal and Advertising Injury Liability
| Covered Offenses | Examples |
|---|---|
| False arrest, detention, imprisonment | Shoplifting accusations |
| Malicious prosecution | Groundless lawsuits |
| Wrongful eviction | Landlord actions |
| Libel and slander | Defamatory statements |
| Invasion of privacy | Unauthorized disclosure |
| Copyright infringement | In advertising |
Coverage C - Medical Payments
- Pays medical expenses regardless of fault
- For injuries on insured's premises
- Or arising from insured's operations
- Subject to per person and aggregate limits
CGL Policy Forms
Occurrence vs. Claims-Made
| Feature | Occurrence | Claims-Made |
|---|---|---|
| Trigger | Occurrence during policy period | Claim made during policy period |
| Tail Coverage | Not needed | May need extended reporting period |
| Premium | Generally higher | May increase over time |
| Long-tail Claims | Covered if occurrence in policy period | Only if claim made while policy active |
Exam Tip: Occurrence policies cover incidents that occur during the policy period, regardless of when the claim is made. Claims-made policies cover claims made during the policy period, regardless of when the incident occurred (after retroactive date).
Products-Completed Operations Coverage
Products-completed operations is included in the CGL and covers:
Products Liability
| Element | Description |
|---|---|
| Coverage | BI or PD from products sold/distributed |
| Applies | After product leaves insured's possession |
| Examples | Defective products causing injury |
| Aggregate | Separate products-completed ops aggregate |
Completed Operations
| Element | Description |
|---|---|
| Coverage | BI or PD from completed work |
| Applies | After work is finished and accepted |
| Examples | Contractor's faulty workmanship |
CGL Exclusions
Common CGL exclusions include:
Standard Exclusions
- Expected or intended injury
- Contractual liability (except insured contracts)
- Liquor liability (for alcohol sellers)
- Workers compensation claims
- Professional liability (errors and omissions)
- Pollution (standard form)
- Auto liability (covered by auto policy)
- Aircraft and watercraft liability
- War and terrorism
CGL Limits Structure
| Limit Type | Description |
|---|---|
| General Aggregate | Total policy payout for covered claims |
| Products-Completed Ops Aggregate | Separate aggregate for products/completed ops |
| Per Occurrence | Maximum per occurrence |
| Personal/Advertising Injury | Per person/organization |
| Damage to Rented Premises | Fire damage to rented premises |
| Medical Payments | Per person |
Example Limits
A typical CGL might have:
- $2,000,000 General Aggregate
- $2,000,000 Products-Completed Ops Aggregate
- $1,000,000 Per Occurrence
- $1,000,000 Personal/Advertising Injury
- $100,000 Damage to Rented Premises
- $5,000 Medical Payments
Test Your Knowledge
Which CGL coverage section covers claims for libel and slander?
A
B
C
D
Test Your Knowledge
A Tennessee contractor completes a roofing job. Six months later, the roof leaks due to faulty workmanship, causing interior water damage. Which coverage applies?
A
B
C
D