Los Angeles Claims Adjuster Property and Causality Practice Exam

Which geographical area does the CGL territory coverage include?

1. The entire continent of Asia

2. The United States and Canada only

3. International waters plus certain U.S. territories

4. All countries worldwide

The correct answer is: International waters plus certain U.S. territories

The correct answer indicates that the Commercial General Liability (CGL) insurance coverage includes international waters plus certain U.S. territories. CGL policies are primarily designed to provide coverage for businesses against claims of bodily injury or property damage that occur in specific geographical locations. Typically, CGL policies cover incidents that take place in the United States, its territories, and Canada. This also includes international waters. Coverage does not usually extend worldwide or to specific countries outside of the mentioned territories except in certain situations, like international operations or events that take place in international waters, where the CGL could still apply. This specificity balances the need for businesses to operate both within domestic borders and in international contexts without providing unfettered global coverage. Businesses operating internationally often seek separate endorsements or policies to ensure they are adequately protected in those areas. This makes the chosen answer relevant and accurate within the scope of standard CGL coverage.