Question

Which of the following are covered as part of Coverage A Bodily Injury and Property Damage of a Commercial General Liability policy?

A. Contingent Liability caused by a subcontractor of the insured
B. Liability assumed under a lease contract
C. All of the answers are correct Correct
D. Liability due to one's products injuring others

Answer 1

Coverage A of a Commercial General Liability policy can cover contingent liability from a subcontractor, liability under a lease contract, and product-related injuries. Deductibles, copayments, and coinsurance are methods used in insurance policies to reduce moral hazard and share costs between policyholders and insurers.

Step-by-step explanation:

Which of the following are covered as part of Coverage A Bodily Injury and Property Damage of a Commercial General Liability policy? The items covered can include:

In understanding how liability insurance can apply to various situations, it is also helpful to know some general methods of reducing moral hazard in insurance policies. These include having deductibles, where the policyholder pays a certain amount before the coverage starts, copayments for specific services, and coinsurance, where the cost is split between the insurer and the insured.

For example, in the context of auto insurance, a policy might cover losses exceeding $500. In health insurance, a policyholder may pay a copayment, such as $20 for a doctor's visit. Coinsurance scenarios could involve an insurance company covering 80% of home repair costs post-fire, with the homeowner responsible for the remaining 20%.