Which of these statements about CGL policies is true?

The statement that CGLs do not cover liability for intentional acts is accurate. Commercial General Liability (CGL) policies are designed to provide coverage for bodily injury, property damage, personal injury, and advertising injury arising from the insured's operations. However, these policies specifically exclude coverage for damages that arise out of intentional acts. This is because the nature of liability insurance is to cover unforeseen events or accidents rather than deliberate or intended actions that result in harm or damage.

In essence, if someone engages in an action that is intended to cause harm or damage, that situation falls outside the purview of liability insurance, including CGLs. This exclusion helps the insurance provider to avoid covering claims where individuals or businesses willingly subject others to risk or harm, which would violate the fundamental principles of liability insurance.

Understanding this aspect is crucial in risk management and liability insurance as it clarifies the boundaries of protection that CGL policies provide. Knowing that intentional acts are not covered allows businesses and their leaders to take steps to mitigate risks and avoid situations where they might expose themselves to liability beyond what their insurance policies can support.