When a corporation purchases a Commercial General Liability Policy, which is not typically named as an insured?

When a corporation purchases a Commercial General Liability Policy, which is not typically named as an insured?

• A. The corporation's employees
• B. The corporation's clients
• C. The corporation's officers
• D. The corporation's subsidiaries

Answer: (B)

The key idea is who is automatically protected under a Commercial General Liability policy. The policy is issued to the named insured (the corporation) and normally covers the corporation’s own people and entities connected to it. Employees are covered because they act on behalf of the named insured, and officers are covered as part of the organization. Subsidiaries are often included either in the definition of insured or through endorsements, to ensure the parent and its related entities are protected. Clients, however, are not automatically insured under a standard CGL policy; they would only be added as an insured if the policy includes an additional insured endorsement or a contractual agreement requiring that. So the option that is not typically named as an insured is the corporation’s clients.

The key idea is who is automatically protected under a Commercial General Liability policy. The policy is issued to the named insured (the corporation) and normally covers the corporation’s own people and entities connected to it. Employees are covered because they act on behalf of the named insured, and officers are covered as part of the organization. Subsidiaries are often included either in the definition of insured or through endorsements, to ensure the parent and its related entities are protected. Clients, however, are not automatically insured under a standard CGL policy; they would only be added as an insured if the policy includes an additional insured endorsement or a contractual agreement requiring that. So the option that is not typically named as an insured is the corporation’s clients.