3.3 Connecticut General Liability Insurance

Commercial General Liability (CGL) Overview

CGL insurance is the foundation of business liability protection in Connecticut. It covers claims arising from business operations, premises, and products.

CGL Coverage Parts

Coverage A: Bodily Injury & Property Damage

Coverage B: Personal & Advertising Injury

Covers intentional torts and advertising-related claims:

• Libel and slander - Defamatory statements
• False advertising - Misleading product claims
• Copyright infringement - Using protected material
• Wrongful eviction - Improper tenant removal
• Invasion of privacy - Unauthorized use of likeness

Coverage C: Medical Payments

• Pays medical expenses for injured third parties
• No-fault coverage (pays regardless of liability)
• Lower limits (typically $5,000 - $10,000)
• Goodwill coverage to avoid lawsuits

Key CGL Terms

Occurrence vs. Claims-Made

Products-Completed Operations

Protects against claims arising from:

• Products sold, manufactured, or distributed
• Work completed away from premises
• Injuries/damage occurring after work is done

Premises-Operations

Covers claims arising from:

• Day-to-day business operations
• Conditions on business premises
• Activities of employees during work

CGL Exclusions

Standard CGL policies do NOT cover:

Professional Liability (Errors & Omissions)

What It Covers

• Negligent acts in professional services
• Errors in advice or recommendations
• Failure to perform professional duties
• Claims-made trigger typically used

Who Needs It

• Insurance agents and brokers
• Accountants and CPAs
• Attorneys
• Consultants
• Healthcare providers
• Real estate professionals

Umbrella and Excess Liability

Umbrella Liability

• Provides additional limits above underlying policies
• May cover some claims not covered by primary policies
• Broader coverage with own insuring agreement

Excess Liability

• Strictly follows underlying policy terms
• Pure additional limits only
• No coverage beyond underlying policy scope

Connecticut-Specific Liability Exposures

Dram Shop Act (CGS 30-102)

Connecticut's Dram Shop Act imposes liability on a permittee (bar, restaurant, package store) who sells alcohol to an intoxicated person who then causes injury. The statute caps recoverable damages (a statutory dollar limit, periodically adjusted) and requires written notice of intent to sue within a short statutory window. Liquor-liability exposure is usually excluded from a standard CGL via the liquor-liability exclusion for businesses in the business of serving alcohol, so a separate liquor liability policy is needed.

Premises Liability and Comparative Negligence

Connecticut follows modified comparative negligence (51% bar, CGS 52-572h), so a slip-and-fall plaintiff who is 51% or more responsible recovers nothing; otherwise the award is reduced by the plaintiff's fault share. A store owner's duty of care depends on whether the entrant is an invitee, licensee, or trespasser.

Construction Anti-Indemnity

Under CGS 52-572k, "hold harmless" clauses in construction contracts that indemnify a party for its own negligence are void as against public policy. This affects how additional-insured and indemnity provisions are drafted for Connecticut contractors.

Product Liability Statute

Connecticut's Product Liability Act (CGS 52-572m et seq.) consolidates product claims into a single statutory cause of action with its own statute of limitations and repose, replacing separate negligence/warranty theories.

How CGL Limits Stack - Worked Example

The CGL declarations show several limits that interact. Assume a Connecticut contractor has: $1,000,000 each-occurrence, $2,000,000 general aggregate, $2,000,000 products-completed-operations aggregate, $1,000,000 personal & advertising injury, $300,000 damage-to-premises-rented, and $10,000 medical payments.

If the contractor has three separate $700,000 premises-operations losses in one year, the first two are paid in full ($1.4M) but the third is limited because the $2,000,000 general aggregate is nearly exhausted - only $600,000 remains. Crucially, completed-operations losses draw on the separate products-completed-ops aggregate, so they are not reduced by premises-operations claims. This separation is a frequent exam point and explains why Connecticut contractors carrying completed-operations risk should confirm both aggregates.

Certificate of Insurance

Clients and landlords commonly require a certificate of insurance (COI) evidencing coverage and naming themselves as additional insureds. The COI is evidence only - it does not amend the policy; the actual additional-insured endorsement controls.

Exam Tip: Know CGL Coverage A (BI/PD) vs. Coverage B (personal and advertising injury), that professional errors need separate E&O, and the Connecticut hooks: the Dram Shop Act, the 51% comparative-negligence bar, and the anti-indemnity statute (52-572k).