15 Standard CGL Policy Exclusions You Must Memorize

In the world of the Commercial General Liability (CGL) policy, Coverage A (Bodily Injury and Property Damage) is where the majority of claims occur. However, for the insurance exam, knowing what is covered is only half the battle. You must master the 15 standard exclusions found in the ISO CG 00 01 form to succeed on the practice General Liability questions.

Exclusions serve several purposes: they eliminate coverage for risks better handled by other policies (like Workers' Comp), remove coverage for uninsurable risks (like intentional acts), and limit the scope of the policy to manageable operational hazards. For a deep dive into the entire policy structure, refer to our complete General Liability exam guide.

• 1. Expected or Intended Injury: Coverage does not apply to bodily injury (BI) or property damage (PD) that the insured intended to happen. Exception: Reasonable force used to protect persons or property is covered.
• 2. Contractual Liability: The CGL excludes liability that the insured is obligated to pay because they assumed it in a contract. Exception: Liability that the insured would have had anyway (without the contract) or liability assumed under an "Insured Contract" (e.g., leases, sidetrack agreements, elevator maintenance).
• 3. Liquor Liability: This exclusion only applies if the insured is in the business of manufacturing, distributing, selling, or serving alcoholic beverages. Host liquor liability for a company holiday party is generally covered.
• 4. Workers' Compensation: Any obligation of the insured under a workers' compensation, disability benefits, or unemployment compensation law is excluded.
• 5. Employer's Liability: This excludes BI to an employee of the insured arising out of and in the course of employment. This risk is meant to be covered under Part Two of a Workers' Comp policy.

• 6. Pollution: Most BI or PD arising out of the actual or threatened discharge of pollutants is excluded. While some minor exceptions exist for building heating equipment, this is a broad exclusion.
• 7. Aircraft, Auto, or Watercraft: BI or PD arising out of the ownership, maintenance, or use of these vehicles is excluded. This requires a Commercial Auto or Aviation policy.
• 8. Mobile Equipment: While mobile equipment is generally covered, this exclusion applies when mobile equipment is being transported by an auto or is being used in a racing or stunting activity.
• 9. War: Liability due to war, rebellion, or revolution is uninsurable and excluded.
• 10. Damage to Property: This excludes damage to property the insured owns, rents, or occupies. It also excludes damage to property in the insured's care, custody, or control.

• 11. Damage to Your Product: As shown in the chart, the CGL does not act as a warranty. If a toaster you manufactured explodes, the CGL covers the kitchen fire, but not the cost to replace the toaster itself.
• 12. Damage to Your Work: Similar to the product exclusion, but applies to services/construction. Note: The exclusion does not apply if the damaged work was performed on your behalf by a subcontractor.
• 13. Damage to Impaired Property: Excludes PD to property that has not been physically injured but is less useful because it incorporates the insured's defective product or work.
• 14. Recall of Products, Work, or Impaired Property: Often called the "Sistership Exclusion." It excludes the costs associated with withdrawing or recalling products from the market due to a known or suspected defect.
• 15. Personal and Advertising Injury: This is excluded under Coverage A because it is specifically insured under Coverage B. This prevents "stacking" of limits for the same occurrence.