CPP – COMMERICAL GENERAL LIABILITY (CGL)
COVERAGE PARTS QUESTIONS AND VERIFIED
ANSWERS
Basic Form Correct Answer: named perils, covers five basic perils including:
Fire
Lightening
Vandalism
Sprinkler linkage
Sinkhole collapse
Plus, the nine extended coverage (EC) perils.
Buildings Correct Answer: additions and extensions to a building and extends to permanent fixtures
(those that are physically attached to the building and considered part of the building) and property used
to service the premises ladders, scaffolding, lawnmowers, etc.).
Business Income Correct Answer: is defined as "net income." Net income includes profit or loss before
income taxes which would have been earned by the business but for the shutdown plus normal
operating expenses including payroll costs.
Business Personal Property Correct Answer: Covers personal property (items which are not land or
affixed to land) and includes the contents of the insured building such as:
machinery and equipment
furniture and fixtures
stock inventory including raw materials and shipping supplies
any other personal property owned by the insured and used in the business.
COVERAGE PARTS QUESTIONS AND VERIFIED
ANSWERS
Basic Form Correct Answer: named perils, covers five basic perils including:
Fire
Lightening
Vandalism
Sprinkler linkage
Sinkhole collapse
Plus, the nine extended coverage (EC) perils.
Buildings Correct Answer: additions and extensions to a building and extends to permanent fixtures
(those that are physically attached to the building and considered part of the building) and property used
to service the premises ladders, scaffolding, lawnmowers, etc.).
Business Income Correct Answer: is defined as "net income." Net income includes profit or loss before
income taxes which would have been earned by the business but for the shutdown plus normal
operating expenses including payroll costs.
Business Personal Property Correct Answer: Covers personal property (items which are not land or
affixed to land) and includes the contents of the insured building such as:
machinery and equipment
furniture and fixtures
stock inventory including raw materials and shipping supplies
any other personal property owned by the insured and used in the business.
