CGL is designed to cover which type of liability most relevant for general contracting?

• A. Auto Liability
• B. Workers' Compensation
• C. Third-party Bodily Injury and Property Damage
• D. Environmental Liability Only

Answer: (C)

Commercial General Liability is built to protect when someone outside the firm is hurt or when someone else’s property is damaged because of the contractor’s work. For general contracting, the primary risk is harm to third parties—like clients, visitors, or neighboring property—resulting in bodily injury or property damage from on-site activities or from completed work. This is exactly what CGL coverage addresses: legal liability to third parties for those injuries and damages, including injuries arising from the contractor’s completed operations.

Auto liability is handled by a separate auto policy because CGL typically excludes most auto exposure unless added. Workers’ compensation covers injuries to the contractor’s employees, not third-party claims. Environmental liability is a specialized area addressing pollution risks and often requires additional coverage. So the most relevant liability CGL provides for general contracting is third-party bodily injury and property damage.