When preparing to ensure adequate CGL coverage, which steps should a business take?

• A. Rely on the base policy limits only, without endorsements.
• B. Focus solely on property exposures.
• C. Identify premises, operations, products, completed operations, and advertising exposures; add appropriate endorsements; monitor limits and renewal terms.
• D. Wait until renewal to review coverage.

Answer: (C)

The main concept here is proactively tailoring a Commercial General Liability program to the business’s actual risk, not just relying on a basic policy. To ensure adequate CGL coverage, a business should systematically identify all liability areas and address them with the right coverage.

Start by mapping the exposures: premises and operations, products and completed operations, and advertising injury. These are the core liability buckets the CGL form is designed to protect. Then, add endorsements and coverage enhancements that fill gaps or align the policy with contracts and risk, such as endorsements that broaden or clarify coverage, include additional insured status where required, and address specific contractual obligations or exclusions. Finally, keep a close eye on limits and renewal terms, adjusting coverage as the business evolves—growth, new products, expanded operations, or changes in risk can quickly outpace existing limits.

Why the other approaches don’t fit: relying on base policy limits without endorsements leaves gaps in coverage for many common liability risks; focusing only on property exposures ignores the liability side; waiting until renewal to review coverage is reactive and can leave gaps mid-cycle. This proactive, comprehensive approach ensures the CGL program truly fits the business’s evolving risk profile.