INTRODUCTION

The AAIS Commercial Liability forms provide comprehensive coverage for a wide range of commercial operations and businesses. This overview highlights four of their Commercial Liability policy forms, with a particular focus on the GL-200, which is the broadest and most widely used for commercial businesses.

The forms include coverage for bodily injury and property damage, as well as medical expenses for injuries to others and fire legal liability. Depending on the chosen form, coverage may also extend to product-related risks and completed work hazards, along with personal and advertising injury liability.

Key components of all forms include an insuring agreement, specific definitions, primary and supplemental coverages, defense coverage, as well as exclusions and conditions.

The four Commercial Liability coverage forms listed below provide coverage for bodily injury and property damage related to the insured's operations. They also include medical payments and fire legal liability coverage. The GL-200 form, the most common among these options, additionally provides coverage for products and completed work, as well as personal injury and advertising injury liability. In contrast, the GL-100 form offers similar coverage to the GL-200, but excludes coverage for personal injury and advertising injury liability. The GL-600 and GL-610 forms have the most limited coverage, also excluding products and completed work hazard coverage.

These variations in coverage forms allow for policy customization, providing necessary coverage while limiting it in cases where the insured's risk does not require or qualify for all the coverages offered in the GL-200.

AAIS Commercial Liability Programs with their coverage forms:

Coverage Form	Coverage L Bodily Injury / Property Damage	Coverage M Medical Payments	Coverage N Products / Completed Work	Coverage O Fire Legal Liability	Coverage P Personal Injury / Advertising Injury
GL-200 (Broad Form)	Included	Included	Included	Included	Included
GL-100 (Limited Form)	Included	Included	Included	Included	No Coverage
GL – 600 (Premises Only)	Included	Included	No Coverage	Included	No Coverage
GL – 601 (Farm Prem/Op)	Included	Included	No Coverage	Included	No Coverage

NOTE: The discussions in this section focus on the GL-200 Commercial Liability Coverage (Broad Form).

ELIGIBILITY

Eligibility is, essentially, unrestricted and applies to all commercial operations and businesses.

COMPARISON

While the AAIS and ISO General Liability Coverage Forms share several similarities, it is essential to recognize the key differences between them. Understanding these distinctions can impact policyholders' decisions regarding coverage options.

PRINCIPAL COVERAGES

The following coverage parts highlight the key coverages offered by the GL-200, providing an overview of the main features included.

Coverage L–Bodily Injury and Property Damage covers all sums the insured is legally obligated to pay as damages from bodily injury or property damage caused by a covered occurrence.
Coverage M–Medical Payments provides coverage for medical expenses caused by bodily injuries sustained in an accident on the insured's property or during the insured’s activities. These medical costs are covered regardless of who is at fault.
Coverage N–Products and Completed Work covers damages the insured is legally required to pay for injuries or damage from the products or completed work hazard. The incident must occur away from the insured's premises after the product has been transferred. Coverage applies to finished or abandoned work but not to work still in progress.
Coverage O–Fire Legal Liability covers the insured’s legal responsibility for fire-related property damage to buildings or parts of buildings they lease or rent.
Coverage P–Personal Injury Liability and Advertising Injury Liability covers all amounts the insured is legally obligated to pay as damages for personal injury and advertising injury offenses related to their business activities.

POLICY CONSTRUCTION

The AAIS Commercial Liability Coverage Form consists of several parts that come together to form a complete policy:

Commercial Liability Coverage Declarations

GL-200–Commercial Liability Coverage Form

Related Article: AAIS Commercial Liability Coverage Form Analysis

CL-100–Common Policy Conditions

Mandatory and Optional Coverage Endorsements

State Amendatory Endorsements

AVAILABLE ENDORSEMENTS

Various endorsements are available to customize the AAIS Commercial Liability Coverage Forms. Some endorsements are mandatory, while others are only required for specific classifications and types of businesses. Additionally, many endorsements are optional, allowing the standard form to be tailored to meet the unique needs of a particular risk.

UNDERWRITING

Underwriting commercial liability coverage for a specific risk involves identifying and assessing the associated exposures, classifying the risk, and then accurately rating it.

RATING

Commercial liability coverage ratings are detailed in the AAIS Commercial Liability Program Manual. The Rating Section provides general rating principles as well as examples.