In what situation would a CGL policy apply to damage caused by a subcontractor?

A Commercial General Liability (CGL) policy typically covers damages resulting from the operations of the insured, including damages caused by subcontractors, but under specific conditions. The correct choice highlights that coverage applies when the subcontractor directly causes the damage.

In general, a CGL policy is designed to protect against claims of bodily injury and property damage that arise out of the insured's premises, operations, products, and completed operations. If a subcontractor, acting in the course of their duties or the scope of their work, causes damage to property or injures someone, the CGL policy can cover those claims, assuming other conditions of the policy are met. This is especially relevant when the subcontractor's work is essential to the completion of the project and results in an incident that falls within the coverage of the insurance.

The other options do not accurately reflect the nuances of coverage. For example, coverage is not universally granted for all damages regardless of the source, nor is it entirely excluded under any circumstance. Similarly, the requirement for coverage isn’t typically contingent solely upon being specified in the contract. Instead, the foundational principle is that the CGL policy must respond when the subcontractor's actions lead to a loss, which aligns with the understanding that the damages must