Why does the CGL exclude coverage for damage to the insured's own property?

• A. Because liability policies automatically cover the insured's property.
• B. Because it would duplicate coverage under other policies (property, inland marine) and the insured's property damage is typically not intended to be covered by liability law.
• C. Because the insured's property is never at risk in liability claims.
• D. Because the deductible for liability policies is higher for property damage.

Answer: (B)

Liability coverage is designed to protect others from injury or property damage caused by the insured, not to insure the insured’s own property. Excluding the insured’s own property avoids duplicating coverage already provided by property or inland marine polices and aligns with how liability policies are intended to function. If the insured’s property were covered under a CGL, it could overlap with (or create gaps in) property insurance, making it harder to coordinate claims and payments. In practice, damage to the insured’s own property is typically handled by a property policy, while the CGL focuses on third-party risk.