Comprehensive General Liability Insurance protects against:

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BlackTom AI · Accepted Answer

Here’s a breakdown of the question and each option to understand what Comprehensive General Liability Insurance typically covers.
Option 1: 'Contractor default' - This concerns the risk that a contractor fails to fulfill obligations, which falls under contractual risk or bonding considerations, not the liability insurance intended to cover bodily injury or property damage claims from third parties. Therefore, this is not a primary coverage of CGL.
Option 2: 'Third-party claims for injuries or damages on site' - This aligns with the core purpose of CGL: it protects the insured against claims made by others for bodily injury or property damage that occur on or arise from the insured's operations, products, or sites. This is the hallmark coverage of CGL policies.
Option 3: 'Material theft during transport' - Theft of materials during transport is typically addressed by other insurance lines such as cargo insurance or property in transit coverage. It is not a standard CGL protection against third-party bodily injury or property damage claims.
Option 4: 'Subcontractor insolvency' - Insolvency concerns the financial reliability of a subcontractor and is generally managed through contractor performance risk, sureties, or specialized insurance riders, not the liability protection typically offered by CGL.
Across the options, the central idea of CGL is to guard the insured against third-party claims arising from injury or property damage linked to their operations on site or connected activities. The other options describe risks that are handled by different types of insurance or risk strategies rather than the traditional scope of CGL.
In summary, Option 2 directly reflects the principal purpose of Comprehensive General Liability Insurance, while the remaining options pertain to risks outside the standard CGL coverage.

2258-1_20CM3034001 Indirect Costs - Bonds & Insurance

Comprehensive General Liability Insurance protects against:

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