Name two common risk management steps to reduce CGL exposure for a business.

• A. Rely on legal defense
• B. Cancel policy and reissue
• C. Implement loss control measures and obtain appropriate endorsements to tailor coverage to exposures (e.g., additional insured, insured contracts, primary and noncontributory, waiver of subrogation)
• D. Increase premiums and reduce coverage

Answer: (C)

Reducing CGL exposure comes from two parallel moves: lowering the chance of an incident and making sure the insurance responds the way you need it to when something does happen. Implement loss control measures such as safety programs, employee training, equipment guards, safe work practices, and OSHA compliance to cut both the frequency and severity of claims. At the same time, obtain endorsements that tailor the coverage to your actual exposures—like adding required insureds on contracts, ensuring the policy is primary and noncontributory where needed, and including waiver of subrogation where acceptable. These endorsements address how the coverage applies in complex relationships and contracts, helping prevent gaps or conflicts in protection. Together, proactive risk controls and properly structured endorsements provide a stronger, more reliable shield against CGL risk. Relying on legal defenses, canceling policies, or simply raising premiums while reducing coverage do not reduce risk in a proactive or protective way.