Under an unendorsed CGL policy, which reason might cause the insurer to refuse payment for a slip-and-fall claim?

Under an unendorsed CGL policy, which reason might cause the insurer to refuse payment for a slip-and-fall claim?

• A. The incident occurred on the insured's property.
• B. The insured has no liability to the claimant.
• C. The policy excludes all premises liability coverage.
• D. The insured must be legally obligated before the insurer has the duty of paying.

Answer: (D)

In a Commercial General Liability policy, the insurer’s duty to pay arises only when the insured is legally obligated to the claimant for damages caused by a covered occurrence. A slip-and-fall on the insured’s premises is a premises-liability scenario, but payment depends on proving that the insured had a legal obligation to the claimant (typically through negligence or another covered basis). If there is no legal obligation, the insurer has no duty to pay, even if a claim is made. That’s why this option is the best: it states the necessary condition for the insurer to bear the cost—the insured must be legally obligated before the insurer has a duty to pay. The other choices don’t capture that trigger as precisely; the incident occurring on the insured’s property isn’t itself a denial, premises location isn’t determinative of coverage, and an unendorsed policy doesn’t automatically exclude all premises liability.

In a Commercial General Liability policy, the insurer’s duty to pay arises only when the insured is legally obligated to the claimant for damages caused by a covered occurrence. A slip-and-fall on the insured’s premises is a premises-liability scenario, but payment depends on proving that the insured had a legal obligation to the claimant (typically through negligence or another covered basis). If there is no legal obligation, the insurer has no duty to pay, even if a claim is made.

That’s why this option is the best: it states the necessary condition for the insurer to bear the cost—the insured must be legally obligated before the insurer has a duty to pay. The other choices don’t capture that trigger as precisely; the incident occurring on the insured’s property isn’t itself a denial, premises location isn’t determinative of coverage, and an unendorsed policy doesn’t automatically exclude all premises liability.