Key Takeaways
- CGL policies have extensive exclusions to eliminate coverage for exposures requiring separate policies (auto, workers comp, professional liability, pollution, etc.).
- The EXPECTED OR INTENDED injury exclusion bars coverage for intentional acts—but if harm is unintended, the exclusion may not apply.
- The CONTRACTUAL LIABILITY exclusion has an important exception: the 'insured contract' exception allows coverage for liability assumed in leases, easements, and certain other agreements.
- The EMPLOYER'S LIABILITY exclusion eliminates coverage for employee injury claims—these are covered by Workers Compensation.
- CARE, CUSTODY, OR CONTROL (CCC) exclusions eliminate coverage for damage to property the insured is working on or has in their care.
Last updated: December 2025
CGL Exclusions
Overview of Exclusions
The CGL policy contains extensive exclusions organized into categories. Understanding these exclusions is ESSENTIAL for the P&C exam.
Purpose of Exclusions:
- Eliminate coverage for uninsurable risks
- Prevent duplicate coverage with other policies
- Reduce moral hazard
- Keep premiums affordable
Coverage A Exclusions (Bodily Injury & Property Damage)
Expected or Intended Injury
| What's Excluded | Details |
|---|---|
| Expected injury | Injury insured expected to occur |
| Intended injury | Injury insured intended to cause |
| Exception | Reasonable force to protect persons or property |
Key Point: The injury must be expected or intended, not just the act. If you swing a hammer and accidentally hit someone, the act was intended but the injury was not.
Contractual Liability
| What's Excluded | What's NOT Excluded (Insured Contracts) |
|---|---|
| Liability assumed in a contract | Lease of premises |
| Indemnification agreements | Sidetrack agreement |
| Hold harmless agreements | Easement or license agreement |
| Elevator maintenance agreement | |
| Municipality indemnification for permits | |
| Other contracts if liability would exist anyway |
Liquor Liability
| Excluded | Applies To |
|---|---|
| Bodily injury/property damage from furnishing alcohol | Businesses in alcohol trade |
| Causing intoxication | Liquor stores, bars, restaurants |
| NOT social hosts (personal parties) |
Solution: Purchase separate Liquor Liability coverage.
Workers Compensation/Employer's Liability
| What's Excluded | Why |
|---|---|
| Obligation under workers comp law | WC provides exclusive remedy |
| Bodily injury to employees | Must purchase Employers Liability |
| Employment-related practices | Requires EPLI coverage |
Pollution Exclusion
| Excluded | Limited Exception |
|---|---|
| All pollution-related claims | Hostile fire releases pollutants |
| Environmental cleanup | Pollution from products at customer site |
| Government-mandated cleanups |
Solution: Purchase Environmental Impairment Liability or Pollution Liability coverage.
Aircraft, Auto, Watercraft
| Excluded | Why |
|---|---|
| All injury/damage from aircraft | Requires Aviation Liability |
| All injury/damage from autos | Requires Auto Liability |
| Watercraft over 26 feet | Requires Watercraft Liability |
Mobile Equipment Exception
| Vehicle Type | Covered Under CGL? |
|---|---|
| Forklifts on premises | ✓ Yes |
| Bulldozers at job site | ✓ Yes |
| Cranes | ✓ Yes |
| Road vehicles registered for use | ✗ No (Auto policy) |
Care, Custody, or Control (CCC)
Property damage is excluded to property:
| Category | Example |
|---|---|
| Owned by insured | Insured's own building |
| Rented to insured | Leased equipment |
| In insured's care | Customer's car in for service |
| Under insured's custody | Property being stored |
| Under insured's control | Property being transported |
Exception: Fire damage to rented premises (up to separate limit).
Products-Completed Operations Exclusions
| What's Excluded | Details |
|---|---|
| Property damage to your product | Defective product itself not covered |
| Property damage to your work | Faulty workmanship not covered |
| Damage to impaired property | Only if not physically damaged |
| Recall of products | Voluntary or mandatory recalls |
Damage to Your Work
| Excluded | Exception |
|---|---|
| Damage to your completed work | Work done by subcontractors |
| Defective workmanship repairs | If subcontractor's work caused damage |
Coverage B Exclusions (Personal/Advertising Injury)
| Exclusion | Details |
|---|---|
| Knowing violation | Insured knew they were violating rights |
| Material published before policy | Prior publication excluded |
| Known false material | Publishing with knowledge of falsity |
| Criminal acts | By or at direction of insured |
| Breach of contract | Contractual obligations |
| Wrong price/quality | Advertising misrepresentation |
| Internet operations | Chatrooms/forums you run |
Key Exclusion Categories Summary
| Category | Requires Separate Coverage |
|---|---|
| Auto | Business Auto Policy |
| Workers Comp | Workers Compensation Policy |
| Professional | Professional Liability (E&O) |
| Pollution | Environmental Liability |
| Employment Practices | EPLI |
| Cyber | Cyber Liability |
| Directors & Officers | D&O Liability |
| Liquor | Liquor Liability |
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Test Your Knowledge
An employee is injured on the job and sues the employer for negligence. Why would this claim be excluded under the CGL policy?
A
B
C
D
Test Your Knowledge
A contractor is working on a customer's house when they accidentally damage the homeowner's antique furniture. This damage would likely be excluded under which provision?
A
B
C
D
Test Your Knowledge
The CGL pollution exclusion has an exception for which of the following?
A
B
C
D