Los Angeles Claims Adjuster Property and Causality Practice Exam

What is an example of a coverage that is NOT typically provided under CGL due to an exclusion?

1. Damages from the collapse of a building

2. Injuries to third parties on the premises

3. Property damage to the named insured's work

4. Natural disaster-related damage

The correct answer is: Property damage to the named insured's work

A Commercial General Liability (CGL) policy provides broad coverage for various liabilities that a business might face, but it also contains specific exclusions to limit coverage in certain situations. One of these exclusions pertains to property damage to the named insured's work. When a CGL policyholder is responsible for property damage to their own work, it generally falls under this exclusion because the CGL is designed to cover liability for damages suffered by others, not damage to one's own projects. For example, if a contractor's work on a building causes damage to that same building, the CGL policy would not respond to those damages since it is deemed that the contractor is responsible for ensuring the quality of their work. This exclusion aims to prevent the CGL policy from being used as a sort of performance bond, covering risks that are more appropriately addressed through other types of insurance, such as a contractor's general liability or professional liability insurance. The other options listed refer to scenarios that could fall under typical CGL coverage, though they may also have their own exclusions under specific circumstances. However, property damage to the insured's work clearly stands out as a common exclusion within CGL policies.