Which of the following losses would typically be covered by a contractor's comprehensive general liability policy?

Which of the following losses would typically be covered by a contractor's comprehensive general liability policy?

• A. Damage to adjoining property from a crane accident.
• B. Personal effects of the contractor's employee.
• C. The contractor's own vehicle damages.
• D. Legal costs to defend the contractor in a criminal case.

Answer: (A)

CGL insurance protects you from claims by others for property damage or bodily injury that result from your business operations. It covers damage to someone else’s property caused by your work, up to the policy limits, but not damage to your own property, or to an employee’s personal belongings, and it doesn’t cover criminal defense costs. So damage to adjoining property from a crane accident fits the pattern of a third‑party property damage claim arising from your operations, which is exactly what a contractor’s CGL policy is meant to cover. By contrast, personal effects of an employee aren’t typically insured under CGL, damage to the contractor’s own vehicle is handled by a commercial auto policy, and defense costs in a criminal case are not covered as a civil liability under CGL.

CGL insurance protects you from claims by others for property damage or bodily injury that result from your business operations. It covers damage to someone else’s property caused by your work, up to the policy limits, but not damage to your own property, or to an employee’s personal belongings, and it doesn’t cover criminal defense costs. So damage to adjoining property from a crane accident fits the pattern of a third‑party property damage claim arising from your operations, which is exactly what a contractor’s CGL policy is meant to cover. By contrast, personal effects of an employee aren’t typically insured under CGL, damage to the contractor’s own vehicle is handled by a commercial auto policy, and defense costs in a criminal case are not covered as a civil liability under CGL.