What does Care, Custody and Control refer to in CGL terminology?

• A. Liability for advertising injuries
• B. Liability for damage to property in insured's care, custody or control
• C. Liability for bodily injuries to employees
• D. Liability for professional services

Answer: (B)

Care, custody and control describes property that is in the insured’s physical possession or under their control, but not owned by them. In CGL terms, this phrase helps define the exposure the policy typically does not cover: damage to property that is in the insured’s care, custody or control. That’s why the best answer is liability for damage to property in the insured’s care, custody or control—the term names the kind of property and the liability concern it creates for the insured.

For example, if a contractor accidentally damages a client’s property while working on-site, that property is under the contractor’s care, custody and control. Under a standard CGL, damage to that property is generally excluded, so the concept of care, custody and control is exactly about identifying that exclusion. The other topics—advertising injuries, bodily injuries to employees, or professional services—are separate exposures not defined by this term.