West Virginia Property and Casualty Licensing Practice Exam

Under the Commercial General Liability (CGL) policy, what does the term "occurrence" refer to?

1. One-time accidents only

2. Occurrence of natural disasters

3. Continuous exposure to harmful conditions

4. Intentional damage by the insured

The correct answer is: Continuous exposure to harmful conditions

The term "occurrence" under a Commercial General Liability (CGL) policy refers to an event that causes injury or damage and can include both one-time incidents as well as continuous exposure to harmful conditions. This definition is particularly significant because it recognizes that some injuries or damages may not result from a single, discrete event but rather from ongoing activities or exposures over time, such as pollution or prolonged workplace safety violations. By encompassing continuous exposure, the CGL policy ensures coverage for scenarios where harm arises gradually, which could be more challenging to attribute to a specific, isolated incident. This understanding is vital for businesses as it broadens the protection they receive under the CGL insurance framework, addressing both immediate and persistent risks that may result in liability claims. In contrast, the other options are limited in scope. Focusing solely on one-time accidents ignores the complexity of many liability claims, while natural disasters are typically covered under different types of insurance. Intentional damage is explicitly excluded from CGL coverage, which is designed to protect against inadvertent acts rather than deliberate actions.