A Commercial General Liability (CGL) policy is designed to protect businesses from claims arising from bodily injury, property damage, and personal and advertising injury occurring in the course of business operations. In the context of a faulty product, the CGL provides coverage for injuries or damages to third parties resulting from product defects that occur in the ordinary course of business. This aligns with liability coverage, as the insured is responsible for damages caused to others due to a product they manufactured or sold.
The scenario involving injury from a faulty product falls directly under the liability aspect of the CGL, as it covers claims made by individuals who sustain injuries as a result of using the insured's defective products. This is a fundamental aspect of CGL policies, which exist primarily to manage risks associated with business activities.
In contrast, vandalism to an insured property typically falls under property insurance rather than liability coverage. Fire caused by the insured’s equipment would usually be a property loss and might be addressed by property insurance or a specific equipment breakdown policy. Damage due to a storm is also associated with property insurance, as it pertains to a loss to the insured's property directly rather than liability to third parties. Thus, a faulty product is the only example listed that aligns with the key function of