Principles of Risk Management and Insurance, 13th Edition

General Liability Loss Exposures

General liability refers to legal liability arising out of business operations other than auto or aviation accidents and employee injuries. A business firm typically purchases a commercial general liability (CGL) policy or a businessowners policy (BOP) to cover its general liability loss exposures. As noted in an earlier chapter, general liability insurance is often purchased as part of a commercial package policy. Important general liability loss exposures include the following:

• Premises and operations liability

• Products liability

• Completed operations liability

• Contractual liability

• Contingent liability

Premises and Operations Liability

Legal liability can arise out of the ownership and maintenance of the premises ...