What is the primary purpose of Coverage A in a Commercial General Liability policy?

• A. To pay for bodily injury and property damage arising from the insured's ongoing operations, products, or premises, up to the policy limits.
• B. To insure only property owned by the insured against loss.
• C. To cover punitive damages arising from intentional acts.
• D. To provide liability coverage only for acts occurring outside the policy period.

Answer: (A)

Coverage A in a Commercial General Liability policy addresses Bodily Injury and Property Damage Liability. Its main function is to protect the insured from the legal responsibility for injuries to people or damage to other people’s property caused by the insured’s business activities—whether these arise from ongoing operations, from the insured’s products, or from acts on the insured’s premises. The insurer will pay up to the policy limits for covered BI/PD claims and will provide defense costs and settlements as part of that coverage. This is not coverage for property owned by the insured itself, and punitive damages are typically excluded. The coverage applies to incidents that occur during the policy period, within the terms and exclusions of the policy.