Under a CGL policy, damage to property owned by others while in the insured's care, custody or control is usually excluded unless what?

• A. The property is in transit
• B. The insured obtains a separate coverage form
• C. An endorsement expanding coverage is added
• D. The loss is under a certain amount

Answer: (C)

Damage to property of others while it’s in the insured’s care, custody or control is a common exclusion in a Commercial General Liability policy. The insured’s liability for damage to someone else’s property in their possession isn’t automatically covered because the policy is not meant to insure such property unless the exposure is explicitly expanded.

To have coverage for this scenario, the policy must include an endorsement that expands coverage for property in the insured’s care, custody or control. This endorsement effectively overrides the exclusion and provides coverage up to its stated limits, with any conditions you’d find in that endorsement. That’s why adding an endorsement that broadens coverage is the correct path.

Other options don’t address the standard exclusion. Merely relying on property in transit, obtaining a separate coverage form, or relying on a monetary threshold does not automatically create the broadened protection found in an endorsement.