Florida · Property & Casualty Sample Interactive Mind Map
Commercial General Liability (CGL)
A visual breakdown of Commercial General Liability (CGL) — one of the concepts you can count on seeing on the exam.
The TESTivity Interactive Mind Mapping Graphic we picked for the Florida Property & Casualty sample is Commercial General Liability (CGL) — and this is a concept you can count on seeing on your pre-licensing exam. Get the structure straight once and those questions turn into free points.
So explore it. Click through, see how the pieces relate, and let the layout do some of the remembering for you.
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The CGL has three coverage grants — know each one's trigger, what it covers, and its exclusions.
Coverage A is the heart of the policy. Coverage B covers a defined list of offenses. Coverage C is no-fault goodwill coverage. Together they form the most tested commercial liability form on the exam.
Coverage A is the heart of the policy. Coverage B covers a defined list of offenses. Coverage C is no-fault goodwill coverage. Together they form the most tested commercial liability form on the exam.
A
Bodily Injury &
Property Damage
Property Damage
Trigger: Occurrence
(accident or repeated harmful exposure)
(accident or repeated harmful exposure)
B
Personal &
Advertising Injury
Advertising Injury
Trigger: Listed Offense
(defamation, privacy, copyright, etc.)
(defamation, privacy, copyright, etc.)
C
Medical
Payments
Payments
Trigger: Injury on premises
(no-fault; no negligence required)
(no-fault; no negligence required)
⚖️
Coverage A — Bodily Injury & Property Damage
The heart of the CGL · Trigger: Occurrence · Duty to defend included
Three Defined Terms You Must Know
"Bodily Injury"
Physical harm, sickness, disease, or death sustained by a person. The injury must be to a person's body — purely emotional distress without physical harm may not qualify under Coverage A.
"Property Damage"
Physical injury to or destruction of tangible property, including loss of use from that physical injury. Also: loss of use of property that has NOT been physically injured (e.g., a neighbor can't use their property because of the insured's operations).
"Occurrence" — The Coverage A Trigger
An accident, including continuous or repeated exposure to substantially the same general harmful conditions. The occurrence trigger means Coverage A responds to accidental events — not intentional acts (those are excluded) and not mere contractual obligations.
What Coverage A Protects
Damages the insured is legally obligated to pay because of BI or PD caused by an occurrence arising from:
• Premises and operations
• Products (manufactured/sold)
• Completed work
• Personal and advertising injury (Coverage B)
• Premises and operations
• Products (manufactured/sold)
• Completed work
• Personal and advertising injury (Coverage B)
Duty to Defend
The insurer has a duty to defend any covered suit — even if the claim is groundless, false, or fraudulent — as long as the allegations could trigger Coverage A if true. Defense costs are supplementary payments outside the policy limit.
Exam angleOccurrence = accidental event or repeated harmful exposure. Coverage A does NOT require proving intent. The duty to defend is broader than the duty to indemnify — the insurer defends even groundless claims. Defense is supplementary (outside the limit) under the standard CGL.
Coverage A has an extensive exclusions list — the most tested section of the entire CGL.
The care, custody, and control exclusion is the single most tested CGL fact on licensing exams. Know every exclusion's name, what it bars, and the key exception — insured contracts.
The care, custody, and control exclusion is the single most tested CGL fact on licensing exams. Know every exclusion's name, what it bars, and the key exception — insured contracts.
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The #1 Tested CGL Exclusion
Care, Custody & Control (CC&C): Coverage A does NOT cover property damage to property in the insured's care, custody, or control. A dry cleaner, parking garage, or warehouse that damages a customer's property has no CGL coverage for that loss. They need inland marine bailee's coverage or a Legal Liability Coverage Form. This exclusion is on virtually every commercial lines exam.
❌ Coverage A — Major Exclusions
🔑 Care, Custody & Control
Property damage to property in the insured's care, custody, or control. Customer vehicles, stored goods, dry cleaning. Needs inland marine or bailee's coverage.
🎯 Expected or Intended Injury
BI or PD the insured expected or intended to cause. Intentional acts are not accidents and are not covered under Coverage A.
📝 Contractual Liability
Liability the insured assumed under a contract — with an important exception for insured contracts (leases, construction indemnities, etc.). See below.
👷 Workers' Compensation & Employer's Liability
Obligations under workers' comp laws AND bodily injury to the insured's own employees arising from employment. WC handles employee injuries.
☠️ Pollution
BI or PD arising from discharge, dispersal, or release of pollutants. Requires separate pollution liability coverage for most environmental exposures.
✈️ Aircraft, Auto, Watercraft
BI or PD arising from the use of aircraft, autos, or watercraft. Addressed by dedicated auto, aviation, and marine policies respectively.
📦 "Your Product"
Physical damage to the insured's own products. The CGL is not a product warranty — damage to the product itself is excluded; damage the product causes to others is covered.
🔨 "Your Work"
Property damage to work the insured performed, if the damage arises from the work itself. Contractor who damages what they built is excluded. Damage to the surrounding structure may still be covered.
🔄 Recall
Damages claimed because of withdrawal, recall, or inspection of the insured's products or work. Product recall expenses require separate recall coverage.
📜
Insured Contracts — The Contractual Liability Exception
Certain contracts restore CGL coverage for assumed liability
What Is an Insured Contract?
An insured contract is a defined category of agreement under which the insured assumes the tort liability of another party. When the contractual liability exclusion would bar Coverage A, the insured contract exception restores coverage for that assumed liability.
Common Insured Contracts
• Lease of premises — tenant holds landlord harmless for tenant's operations
• Construction indemnification agreements — contractor assumes owner's liability
• Easement agreements
• Railroad sidetrack agreements
• Construction indemnification agreements — contractor assumes owner's liability
• Easement agreements
• Railroad sidetrack agreements
Exam angleContractual liability exclusion bars most assumed liability. Insured contracts restore coverage. The most common exam example: a tenant who signs a lease agreeing to hold the landlord harmless — that indemnification obligation is an insured contract, so the tenant's CGL covers the assumed landlord liability.
Coverage B is offense-based, not occurrence-based — it covers a specific enumerated list of intentional-type wrongs.
The trigger for Coverage B is the commission of a listed offense. Not every advertising or reputation claim is covered — only those matching one of the defined offenses.
The trigger for Coverage B is the commission of a listed offense. Not every advertising or reputation claim is covered — only those matching one of the defined offenses.
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Coverage B — Personal & Advertising Injury
Offense-based trigger · Covers specifically listed wrongs, not all advertising claims
✅ Covered Offenses — Personal & Advertising Injury
DefamationOral or written defamation — libel, slander, or disparagement of a person or organization
False Arrest / DetentionFalse arrest, detention, or imprisonment
Malicious ProsecutionWrongful initiation of legal proceedings against a person
Wrongful Eviction / EntryWrongful eviction from or wrongful entry into premises — landlord liability to tenants
Privacy ViolationInvasion of privacy by placing a person in a false light; oral or written publication violating right of private occupancy
Copyright / Trade Dress InfringementCopyright infringement, trade dress infringement, or misappropriation of advertising ideas — in the insured's advertising
❌ Coverage B Major Exclusions
• Knowing violation — offenses committed with knowledge of falsity
• Criminal acts by the insured
• Contract liability — obligations assumed by contract
• Patent & trade secret infringement — only advertising-context copyright is covered
• Electronic chat rooms/bulletin boards — if content originated with the insured
• Criminal acts by the insured
• Contract liability — obligations assumed by contract
• Patent & trade secret infringement — only advertising-context copyright is covered
• Electronic chat rooms/bulletin boards — if content originated with the insured
Coverage A vs. Coverage B — The Key Distinction
Coverage A: Triggered by an occurrence (accident) causing BI or PD
Coverage B: Triggered by commission of a listed offense — a specifically enumerated wrong. The act may be deliberate (defamation, invasion of privacy), but must match the defined list to trigger Coverage B.
Coverage B: Triggered by commission of a listed offense — a specifically enumerated wrong. The act may be deliberate (defamation, invasion of privacy), but must match the defined list to trigger Coverage B.
Exam angle — The Patent TrapPatent infringement is specifically excluded from Coverage B. Only copyright and trade dress infringement in the insured's advertising are covered. A patent infringement claim = no Coverage B. Trade secret infringement = excluded. Always check whether the IP claim is in the covered list.
Coverage C is the no-fault goodwill payment — quick compensation without requiring proof of negligence.
Supplementary payments are the defense-cost mechanism. Under the standard CGL, defense is always outside the limit — unlike some umbrella policies. Know this distinction cold.
Supplementary payments are the defense-cost mechanism. Under the standard CGL, defense is always outside the limit — unlike some umbrella policies. Know this distinction cold.
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Coverage C — Medical Payments
No-fault goodwill coverage · No negligence required · Quick payment to prevent litigation
✅ Coverage C Pays For
🩹 First aid at the time of accident
🏥 Medical, surgical, and dental services
🚑 Ambulance and hospital charges
🦾 Prosthetic devices
⚰️ Funeral services
❌ Coverage C Does NOT Cover
The named insured and employees (Workers' Comp)
Workers' compensation claimants
Persons hired to do work on the premises
Off-premises business operations injuries
Products/completed work injuries (after leaving custody)
$5K–$10K
Standard Coverage C limit per person per accident. Much lower than Coverage A limits — reflects Coverage C's role as a first-response payment tool, not full compensation.
Exam angleCoverage C is no-fault — the injured person does not need to prove the insured was negligent. Employees are excluded (workers' comp handles them). Purpose: quick payment for minor injuries to prevent lawsuits.
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Supplementary Payments
Paid in addition to and outside the Coverage A per occurrence and aggregate limits
What Supplementary Payments Cover
Defense Costs
All expenses the insurer incurs investigating and defending claims — attorney fees, expert witnesses, investigation costs
All expenses the insurer incurs investigating and defending claims — attorney fees, expert witnesses, investigation costs
Bonds to Release Attachments
Premiums on bonds required to release attachments or stay judgment execution pending appeal
Premiums on bonds required to release attachments or stay judgment execution pending appeal
Court Costs
Court costs taxed against the insured in covered suits
Court costs taxed against the insured in covered suits
Pre- & Post-Judgment Interest
Interest on the judgment amount — both before and after judgment, until the insurer tenders its payment
Interest on the judgment amount — both before and after judgment, until the insurer tenders its payment
Reasonable Expenses at Insurer's Request
Up to $250/day for the insured's lost earnings when cooperating with the insurer's defense
Up to $250/day for the insured's lost earnings when cooperating with the insurer's defense
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Defense Costs Do NOT Erode the Standard CGL Limit
Under the standard CGL, defense costs are supplementary payments — paid in addition to the Coverage A limit. If the limit is $1,000,000 and defense costs are $200,000, the insurer pays $1,200,000 total.
Warning: Some umbrella and excess liability policies use "defense within limits" (burning limits), where every dollar of defense erodes the available coverage. The standard CGL does not work that way. This distinction is a common exam question.
Warning: Some umbrella and excess liability policies use "defense within limits" (burning limits), where every dollar of defense erodes the available coverage. The standard CGL does not work that way. This distinction is a common exam question.
Exam angleStandard CGL defense = supplementary payment = outside the limit. Umbrella/excess may use burning limits (defense within limits). Know which is which and what it means for the total insurer payment.
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Top Exam Tips — Commercial General Liability (CGL)
1. Three coverages: A = BI/PD (occurrence trigger), B = personal & advertising injury (offense trigger), C = medical payments (no-fault).
2. Care, custody & control exclusion — the #1 tested CGL fact. No Coverage A for property in the insured's care. Dry cleaner, parking garage, warehouse = need inland marine bailee's coverage.
3. Insured contracts restore coverage for certain assumed liabilities. Lease of premises and construction indemnities are the classic examples.
4. Coverage B is offense-based, not occurrence-based. Patent infringement and trade secret infringement are excluded — only advertising-context copyright/trade dress is covered.
5. Coverage C is no-fault — no negligence required. Does not cover employees (workers' comp) or off-premises business operations.
6. Defense costs under standard CGL are supplementary payments — outside the limit. Umbrella/excess may burn the limit with defense costs. Know the difference.
2. Care, custody & control exclusion — the #1 tested CGL fact. No Coverage A for property in the insured's care. Dry cleaner, parking garage, warehouse = need inland marine bailee's coverage.
3. Insured contracts restore coverage for certain assumed liabilities. Lease of premises and construction indemnities are the classic examples.
4. Coverage B is offense-based, not occurrence-based. Patent infringement and trade secret infringement are excluded — only advertising-context copyright/trade dress is covered.
5. Coverage C is no-fault — no negligence required. Does not cover employees (workers' comp) or off-premises business operations.
6. Defense costs under standard CGL are supplementary payments — outside the limit. Umbrella/excess may burn the limit with defense costs. Know the difference.
Exam vocabulary
Key Terms to Know
Coverage A — BI & PD
The heart of the CGL. Pays damages for bodily injury and property damage caused by an occurrence arising from the insured's business. Trigger: occurrence (accident or repeated harmful exposure).
Occurrence (Coverage A)
An accident, including continuous or repeated exposure to substantially the same general harmful conditions. The trigger for Coverage A — distinguishes accidental from intentional harm.
Care, Custody & Control (CC&C)
Coverage A exclusion barring property damage to property in the insured's care, custody, or control. Businesses holding customers' property need inland marine bailee's coverage to fill this gap.
Insured Contract
A defined category of contract under which the insured assumes another party's tort liability. Excepted from the contractual liability exclusion. Examples: lease of premises, construction indemnification agreements.
Coverage B — Personal & Advertising Injury
Covers liability for specifically listed offenses: defamation, false arrest, privacy violations, copyright/trade dress infringement in advertising. Trigger: commission of a listed offense (not an occurrence).
Coverage C — Medical Payments
No-fault goodwill coverage that pays medical expenses for persons injured on the insured's premises without requiring proof of negligence. Standard limit: $5,000–$10,000 per person. Does not cover employees.
Supplementary Payments
Amounts paid by the insurer in addition to and outside the Coverage A limits — including defense costs, bonds, court costs, and judgment interest. Defense never erodes the standard CGL limit.
Burning Limits (Defense Within Limits)
A policy structure (common in umbrella/excess) where defense costs reduce the available policy limit. Contrasts with the standard CGL, where defense is always supplementary and outside the limit.
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