Define 'property damage' as used in a CGL policy.

Define 'property damage' as used in a CGL policy.

• A. Physical injury to the body.
• B. Damage to persons.
• C. Physical injury to tangible property, including loss of use, or destruction or damage.
• D. Loss of income due to business interruption.

Answer: (C)

Property damage in a Commercial General Liability policy refers to harm to physical, tangible property, including any loss of use of that property, or its destruction or damage. This means the policy covers things you can touch that are damaged or made unusable. That’s why the definition stating physical injury to tangible property, including loss of use, or destruction or damage, is the correct one. It does not describe bodily injury to people, which is a separate coverage area, nor does it describe lost income from business interruption unless that income loss results from property damage.

Property damage in a Commercial General Liability policy refers to harm to physical, tangible property, including any loss of use of that property, or its destruction or damage. This means the policy covers things you can touch that are damaged or made unusable. That’s why the definition stating physical injury to tangible property, including loss of use, or destruction or damage, is the correct one. It does not describe bodily injury to people, which is a separate coverage area, nor does it describe lost income from business interruption unless that income loss results from property damage.