Ace the 2026 Washington State Insurance Exam – Insure Your Success Today!

The correct answer is that Commercial General Liability (CGL) policies provide benefits for general business liabilities. These policies are specifically designed to protect businesses from a wide range of potential liabilities that can arise from their operations. This includes coverage for bodily injury, property damage, personal injury, and advertising injury that occur on the premises of the insured, or as a result of the insured's business activities.

CGL policies are fundamental for businesses, as they help cover legal costs, settlements, or judgments that may arise from lawsuits resulting from these liabilities. They thus provide a critical safeguard for businesses against the financial repercussions of incidents that could otherwise be devastating.

In contrast, excess liability insurance typically offers additional coverage beyond the limits of a primary liability policy, meaning it is an umbrella-like policy that kicks in after certain thresholds are met rather than addressing general business liabilities directly. Property insurance policies are focused on covering physical assets such as buildings and equipment rather than liabilities to third parties. Group health insurance policies are intended for healthcare coverage for employees and do not address business liability issues at all.