Question

The Commercial General liability differs from the Liabilities section of the homeowner's policy in that:

a) Several different limits apply in the homeowner's form.
b) Both policies are the same.
c) There are five (5) different limits under the commercial form.
d) There is no clear distinction between the two (2) forms.

Answer 1

The Commercial General Liability insurance differs from the homeowner's policy in scope, coverage limits, and nature of risks, reflecting the unique needs of businesses contrasted with individual homeowners.

Step-by-step explanation:

The student's question is about the difference between Commercial General Liability insurance and the liability section of a homeowner's policy. The two types of insurance have distinct purposes and coverage details. Commercial General Liability insurance is designed to protect businesses from a wide range of potential liabilities, which may include bodily injury, property damage, and personal and advertising injury claims. It can have multiple different limits with respect to different coverages.

On the other hand, the liability section of a homeowner's policy is meant to protect individual homeowners against claims for bodily injury or property damage that others may suffer as a result of the homeowner's action or inaction, typically on the homeowner's property. This policy usually has its own set of limits.

The key distinctions are the scope, limits, and the nature of risks covered, which reflect the different needs of a business versus an individual homeowner.