Casualty and liability
Commercial general liability
Commercial general liability covers a business against third-party claims for bodily injury and property damage arising from its premises, operations, and products.
Reviewed September 2026 · Exam outline effective September 1, 2026
In plain English
CGL responds to harm the business causes to others rather than to damage the business suffers itself. The claimant is outside the policy, which makes it third-party coverage.
Because it is liability coverage, establishing legal responsibility precedes payment. The negligence framework and the damages categories both apply.
Why the exam tests it
The exam pairs commercial property and commercial general liability specifically to test whether candidates can identify first-party versus third-party exposure from a fact pattern.
The trap
Using CGL to repair the insured business’s own damaged property. Its own property damage is a commercial property question, not a liability one.
Worked example
A customer is injured by a hazard on a store’s floor and the same storm damages the store’s roof. The customer injury is a commercial general liability claim; the roof is a commercial property claim. One file, two frameworks.
Full course
Study this with the complete Texas All-Lines course
This concept is covered in depth in the "Commercial General Liability" lesson, alongside every other topic on the content outline.
Related terms
- Commercial propertyCommercial property insurance covers business buildings, business personal property, and related exposures, and typically requires payment for direct physical loss to covered property.
- LiabilityLiability is legal responsibility for harm caused to another party, and liability insurance responds to sums the insured becomes legally obligated to pay because of that responsibility.
- Bodily injuryBodily injury is physical harm to a person, including sickness or disease and, where the policy so provides, death resulting from that harm.
- Property damageProperty damage in liability terms is physical injury to tangible property, including resulting loss of use, for which the insured may be legally responsible.
Compared side by side
Exam topics using this term
Sources
- Pearson VUE — Texas Department of Insurance licensing exams
Scheduling, candidate handbook, content outlines, test-center rules, and application timing. Reviewed 2026-07-21.
Requirements, fees, forms, exam details, and deadlines can change. Verify the current rule with the linked authority before scheduling, applying, renewing, or handling a real claim.
For exams on or after September 1, 2026. If your exam is scheduled earlier, use the outline that applies to your exam date. Texas Exam Academy is independent exam preparation and is not affiliated with or approved by the Texas Department of Insurance or Pearson VUE. Verify current eligibility, fees, forms, and requirements with the responsible authority.