What ongoing practice is essential to maintain adequate CGL coverage?

• A. Monitor limits and renewal terms.
• B. Increase the deductible to maximize savings.
• C. Cancel policy mid-term to reduce risk.
• D. Rely on memory of policy terms.

Answer: (A)

Regularly monitoring the policy limits and renewal terms is essential to keep CGL coverage adequate. As your business evolves, your exposure can change, so the limits per occurrence and in the aggregate may need to be adjusted. Renewal terms can also alter what is covered, endorsements included, exclusions, and pricing. By staying on top of these aspects—tracking renewal dates, reviewing changes in operations or locations, and requesting appropriate increases in limits or added endorsements—you help ensure there are no gaps in protection when a claim arises or when the policy renews.

Raising the deductible might lower premium but it reduces protection in a claim, which doesn’t maintain adequate coverage. Canceling mid-term can create a lapse in protection, leaving you exposed until a new policy is in place. Relying on memory of policy terms is risky because terms can change at renewal or with endorsements, and important details may be missed.

So, ongoing oversight of limits and renewal terms keeps the coverage aligned with current risk and business needs.