What is the primary purpose of a Commercial General Liability (CGL) policy's insuring agreement?

• A. To cover the insured's legal liability for BI and PD arising from covered occurrences, plus Coverage B and C as applicable.
• B. To provide property coverage for buildings and real estate.
• C. To insure only medical payments.
• D. To cover professional liability only.

Answer: (A)

The insuring agreement in a Commercial General Liability policy is the insurer’s promise to pay the insured’s legal liability for bodily injury and property damage that results from a covered occurrence. This is the core function, focusing on third-party claims arising from accidents or events during the policy period. It commits to paying damages the insured becomes legally obligated to pay, up to the policy limits, and to defend against such claims. In addition, if triggered, it also encompasses Coverage B (personal and advertising injury) and Coverage C (medical payments) as applicable, but the essential purpose remains liability for BI/PD to others from covered occurrences. The other options describe distinct coverages not provided by the primary insuring agreement: property coverage for buildings is a different line, medical payments is Coverage C, and professional liability is outside the standard CGL.