11.3 Key CGL Exclusions and Endorsements

Alaska Property & Casualty Insurance State

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1 Standalone Coverage Map

Standalone Coverage Map

2 Introduction: Alaska Property & Casualty Insurance Exam Overview

Alaska Property & Casualty Exam Overview

3 National Portion: Insurance Fundamentals

1.1 Risk, Hazards, Perils, and the Law of Large Numbers 1.2 Insurable Interest, Indemnity, and Other Insurance Principles 1.3 Insurance Contract Law and Elements 1.4 Policy Structure: Declarations, Insuring Agreement, Conditions, Exclusions 1.5 Parties, Agents vs. Brokers, and Authority

4 National Portion: Property Insurance Concepts

2.1 Causes of Loss / Named-Peril vs. Open-Peril 2.2 Valuation: ACV, Replacement Cost, and Functional Value 2.3 Coinsurance and the Coinsurance Formula 2.4 Deductibles, Limits, and Loss Settlement 2.5 Common Property Policy Conditions and Clauses

5 National Portion: Dwelling Policies (DP)

3.1 Dwelling Policy Forms DP-1, DP-2, DP-3 3.2 Dwelling Coverages A-E and Other Coverages 3.3 Dwelling Perils, Conditions, and Endorsements 3.4 Mobile Home and Specialized Dwelling Coverage

6 National Portion: Homeowners Policies - Forms & Section I

Homeowners Forms HO-2 through HO-8 and Eligibility Section I Coverages A-D and Additional Coverages Section I Perils Insured Against and Exclusions Replacement Cost vs. ACV and Loss Settlement in Homeowners

7 National Portion: Homeowners Policies - Section II & Endorsements

Section II Coverages E (Liability) and F (Medical Payments) Homeowners Conditions and Duties After Loss Common Homeowners Endorsements

8 National Portion: Personal Auto Policy - Liability & Injury

6.1 Personal Auto Policy Structure and Eligibility 6.2 Part A Liability and Supplementary Payments 6.3 Part B Medical Payments 6.4 Part C Uninsured/Underinsured Motorists

9 National Portion: Personal Auto Policy - Physical Damage & Duties

7.1 Part D Coverage for Damage to Your Auto 7.2 Exclusions and Part E Duties After an Accident 7.3 Part F General Provisions, Endorsements, and No-Fault Concepts

10 National Portion: Liability Insurance Concepts

8.1 Negligence, Torts, and Legal Liability 8.2 Defenses, Damages, and Vicarious Liability 8.3 Occurrence vs. Claims-Made Triggers 8.4 Bodily Injury, Property Damage, and Personal/Advertising Injury

11 National Portion: Commercial Property Insurance

9.1 Commercial Package Policy Structure and Common Policy Conditions 9.2 Building and Personal Property Coverage Form (BPP) 9.3 Causes of Loss Forms (Basic, Broad, Special) 9.4 Business Income and Extra Expense 9.5 Commercial Property Endorsements and the BOP

12 National Portion: Commercial General Liability - Coverages

10.1 CGL Coverage A: Bodily Injury and Property Damage Liability 10.2 CGL Coverage B: Personal and Advertising Injury, Coverage C: Medical Payments 10.3 Who Is an Insured and Supplementary Payments

13 National Portion: Commercial General Liability - Limits, Triggers & Exclusions

11.1 CGL Limits of Insurance and Aggregates 11.2 Occurrence vs. Claims-Made CGL and Retroactive Dates 11.3 Key CGL Exclusions and Endorsements

14 National Portion: Commercial Auto Insurance

12.1 Business Auto Coverage Form and Covered Auto Symbols 12.2 Commercial Auto Liability and Physical Damage 12.3 Motor Carrier / Trucking and MCS-90 12.4 Garage Coverage Form and Garagekeepers 12.5 Commercial Auto Endorsements

15 National Portion: Workers Compensation

13.1 Workers Compensation Statutory Background and Benefits 13.2 Part One (Workers Comp) and Part Two (Employers Liability) 13.3 Premium Basis, Experience Modification, and Classification 13.4 Other States, USL&H, and Federal Acts 13.5 Workers Comp Exclusions and Endorsements

16 National Portion: Other Commercial Lines - BOP, Crime & Marine

14.1 Businessowners Policy (BOP) in Depth 14.2 Crime and Fidelity Coverage 14.3 Inland Marine and Nationwide Marine Definition 14.4 Ocean Marine Coverages (Hull, Cargo, Freight, P&I)

17 National Portion: Other Commercial Lines - Specialty & Professional

15.1 Farm and Agricultural Coverage 15.2 Commercial Umbrella and Excess Liability 15.3 Professional Liability and Errors & Omissions 15.4 Directors & Officers and Employment Practices Liability

18 National Portion: Other Commercial Lines - Surety, Flood & Specialty

16.1 Surety and Fidelity Bonds 16.2 National Flood Insurance Program (NFIP) 16.3 Cyber, Aviation, and Other Specialty Lines

19 National Portion: Insurance Regulation & Market Conduct

17.1 State Regulation, Licensing, and the McCarran-Ferguson Act 17.2 Rates, Forms, Solvency, and Guaranty Associations 17.3 Producer Authority, Fiduciary Duty, and Company Operations

20 National Portion: Ethics & Unfair Trade Practices

18.1 Unfair Trade Practices and Unfair Claims Settlement 18.2 Producer Ethics, Errors & Omissions Exposure, and Fiduciary Conduct 18.3 Privacy, Fraud, and Consumer Protection

21 Chapter 1: Alaska P&C Insurance Regulation & Licensing

1.1 Alaska Division of Insurance 1.2 Alaska P&C Producer Licensing Requirements 1.3 Alaska Producer Duties and Responsibilities

22 Chapter 2: Alaska Property Insurance

2.1 Alaska Homeowners Insurance 2.2 Alaska Property Insurance Policy Provisions

23 Chapter 3: Alaska Auto & Casualty Insurance

3.1 Alaska Auto Insurance Requirements 3.2 Alaska Commercial Liability Insurance

24 Chapter 4: Alaska Ethics & Professional Conduct

4.1 Alaska Ethical Standards for Insurance Producers 4.2 Alaska Privacy Laws and Regulatory Compliance

11.3 Key CGL Exclusions and Endorsements

Key Takeaways Explain This Topic AI

Coverage A excludes expected or intended injury, contractual liability (with an insured-contract exception), workers compensation/employer's liability, pollution, auto/aircraft/watercraft, and liquor liability for those in that business

The 'your work,' 'your product,' and 'damage to impaired property' exclusions bar coverage for the insured's own faulty work or product - CGL is not a performance warranty

The insured-contract exception restores contractual liability coverage for liability the insured assumes in qualifying contracts such as leases and hold-harmless agreements

Additional Insured endorsements (e.g., CG 20 10 ongoing operations, CG 20 37 completed operations) extend the named insured's coverage to another party

Liquor liability is excluded only for those IN the business of selling/serving alcohol; a host at a company party is covered by host liquor liability

Last updated: June 2026

Why Exclusions Define Coverage

The insuring agreement of the CGL is deliberately broad; the exclusions in Coverage A (Section I) carve out the risks the insurer will not assume. Exam writers test exclusions far more than the insuring agreement because that is where claims are actually denied. Memorize the major Coverage A exclusions, lettered (a) through (q) on CG 00 01 .

• Exclusion What it bars Key nuance
• (a) Expected or Intended Injury Deliberately caused harm Reasonable-force self-defense is excepted
• (b) Contractual Liability Liability assumed in a contract Insured-contract exception restores most of it
• (c) Liquor Liability Serving/selling alcohol Only if IN that business; host liquor is covered
• (d) Workers Comp / (e) Employer's Liability Employee injury Belongs in WC and EL policies
• (f) Pollution Discharge of pollutants Very broad; needs separate environmental policy
• (g) Aircraft, Auto, Watercraft Liability from these Covered by auto/aviation/marine policies
• (j-n) Business-Risk Group Your work, your product, impaired property The most tested cluster
• The Business-Risk Exclusions

The CGL is not a performance bond or warranty . The so-called business-risk exclusions make this explicit:

Damage to Your Product (k) — the insured's own product that fails is not covered; that is a quality-control cost, not an insurable accident.

Damage to Your Work (l) — faulty workmanship damaging the insured's own completed work is excluded (subject to a subcontractor exception).

Damage to Impaired Property (m) — purely economic loss because the insured's product or work is defective or late, where there is no physical injury to other property.

Quick Answer: CGL pays when the insured's faulty work injures someone else's person or property — not to repair or replace the insured's own defective work or product. That is a business risk the insured must bear.

Worked scenario: A roofer installs a roof that leaks. Rainwater ruins the building owner's expensive inventory.

Replacing the defective roof itself → excluded (your work).

Damage to the owner's inventory caused by the leak → covered (third-party property damage). The line between the insured's own work and resulting third-party damage is a classic exam trap.

The Insured-Contract Exception

The contractual-liability exclusion (b) has a major carve-back: it does not apply to liability the insured assumes under an insured contract . Insured contracts include leases of premises, sidetrack agreements, easements, obligations to indemnify a municipality, and — most importantly — the part of any contract where the insured assumes the tort liability of another party (a hold-harmless or indemnification clause). This is why a lease's hold-harmless provision is enforceable under the CGL.

Pollution and Liquor Nuances

The pollution exclusion (f) is broad and bars most environmental claims; insureds with pollution exposure need a separate Pollution Liability or CPL policy. The liquor liability exclusion (c) applies only to insureds in the business of manufacturing, selling, serving, or furnishing alcohol. A business that merely hosts a holiday party retains host liquor liability coverage under the CGL — a frequently tested distinction.

Common Endorsements

Endorsements modify the base form. The most tested are the Additional Insured endorsements, which extend the named insured's coverage to another party (often required by contract):

CG 20 10 — Additional Insured, owners/lessees/contractors for ongoing operations .

CG 20 37 — Additional Insured for completed operations (pairs with CG 20 10 for full protection).

CG 20 26 — Additional Insured, designated person or organization.

CG 25 03 / CG 25 04 — Designated Construction Project(s) / Designated Location(s) General Aggregate Limit, giving a separate aggregate per project or location so one project's losses do not erode the limit for others.

Trap: an additional insured under CG 20 10 (ongoing ops only) is NOT protected for completed-operations claims arising after the work is finished — the contract should also require CG 20 37.

The Subcontractor Exception to 'Your Work'

The "damage to your work" exclusion (l) contains an important carve-back: it does not apply if the damaged work, or the work out of which the damage arises, was performed by a subcontractor . This subcontractor exception is the reason a general contractor's CGL can respond to property damage caused by faulty work a sub performed — without it, completed-operations coverage on construction projects would be largely illusory. Exam questions pair a GC, a defective subcontractor's installation, and resulting damage; the subcontractor exception restores coverage that the bare exclusion would have removed.

Pollution Exclusion Carve-Backs

The broad pollution exclusion (f) has limited exceptions. Coverage may survive for bodily injury from heat, smoke, or fumes of a hostile fire , and for certain building-heating-equipment fume claims. True environmental exposures — gradual seepage, cleanup orders, discharge of contaminants — require a separate Pollution Legal Liability (PLL) or Contractors Pollution Liability (CPL) policy. Do not expect the standard CGL to fund a cleanup; that is a classic denied-claim scenario.

Other Frequently Tested Exclusions

• Exclusion What it removes Where the risk belongs
• Recall of Products (n) Cost to recall/withdraw a defective product Product Recall / Product Withdrawal policy
• War Liability arising from war Generally uninsurable in CGL
• Electronic data Loss of use of electronic data Cyber liability policy
• Employment-related practices (by endorsement CG 21 47) Wrongful termination, harassment EPLI policy
• Putting It Together

The pattern across CGL exclusions is consistent: the form insures third-party bodily injury and property damage caused by accidents, and excludes (1) the insured's own business risks (your work, your product, impaired property, recall), (2) exposures meant for specialty lines (auto, watercraft, aircraft, pollution, professional, employment, cyber), and (3) intentional or contractual liabilities except where a carve-back restores them. When a question describes a denial, trace it to one of these three categories and the answer follows.