What is the Personal and Advertising Injury Limit in a CGL policy?

The Personal and Advertising Injury Limit in a Commercial General Liability (CGL) policy refers to the maximum payout that an insurance company will cover for damages arising from personal injury and advertising injury combined. This limit encompasses various forms of harm, including but not limited to defamation, false arrest, copyright infringement, or invasion of privacy that may occur as a result of advertising and business activities.

In a CGL policy, the total coverage provided for personal and advertising injury is packaged together into a single limit. This means that when claims are made due to these types of injuries, they draw from the same pool of coverage funds, highlighting the importance of understanding how these limits operate in the context of overall policy limits. By knowing this, businesses can better manage their risk and ensure they have sufficient coverage tailored to their operational needs.

The other choices focus individually on advertising costs, personal injury, or advertising injury without combining them into the total limit provided in the policy. Therefore, they do not accurately reflect the comprehensive nature of the coverage provided by the Personal and Advertising Injury Limit as stipulated in a CGL policy.