Los Angeles Claims Adjuster Property and Causality Practice Exam

Which type of coverage does CGL Coverage A provide?

1. Bodily Injury and Property Damage

2. Personal and Advertising Injury Liability

3. Medical Payments to Others

4. Workers' Compensation

The correct answer is: Bodily Injury and Property Damage

CGL Coverage A specifically addresses Bodily Injury and Property Damage liability. This type of coverage is essential for businesses as it protects them from claims resulting from injuries to third parties or damage to their property that may occur during business operations. When an entity is held liable for causing physical harm or property damage, Coverage A steps in to cover legal costs, settlements, and judgments. This allows businesses to operate without the constant fear of litigation concerning accidents or damages that may arise as a result of their activities. Other coverage types mentioned, such as Personal and Advertising Injury Liability, Medical Payments to Others, and Workers' Compensation, serve different purposes. Personal and Advertising Injury Liability primarily deals with offenses like slander or copyright infringement, while Medical Payments to Others covers immediate medical expenses for injuries regardless of fault. Workers' Compensation is a separate policy that handles employee injuries incurred during work hours, rather than third-party claims. Understanding these distinctions is crucial for navigating insurance coverage options effectively.