How to Judge a CGL Policy (and the Broker Behind It)

You don’t need to be an underwriter to judge a CGL policy. You need to read past the headline limit, and to know what a good broker should do when a claim is contested. Here is how to do both — for any broker, including us. (New to the cover? Start with the full CGL guide.)

Read the sub-limits, not the headline

A large aggregate limit looks reassuring, but claims are paid against the sub-limits inside it — for products, advertising injury, premises and so on. A policy with a big headline number and a thin sub-limit on your real exposure can still leave you short. Always ask for the sub-limit on the section that matches your actual risk — which means knowing what CGL covers and what it doesn’t, and which exposures your business actually carries.

Defence costs: inside or outside the limit?

Legal defence can be expensive. Check whether defence costs are paid within the limit (eroding what’s left for the claim) or in addition to it. Two policies at the same price can behave very differently here.

Occurrence vs claims-made

An occurrence policy covers incidents during the policy period whenever the claim arrives; claims-made covers only claims made while the policy is live. For work whose problems surface years later, the basis matters more than a small price difference.

Global jurisdiction for exporters

If you sell into the US, EU or GCC, check whether the policy extends to claims brought in those jurisdictions. A domestic-only policy can leave an exporter’s biggest exposure uncovered.

The criteria, as a checklist

Run any policy past these five — and treat price as the last filter, not the first, once you understand what drives your premium.

1. Sub-limits match your real exposureNot just a big aggregate — the right number on the section you’ll actually claim against.
2. Defence costs treatment is clearYou know whether legal costs sit inside or on top of the limit.
3. Policy basis fits your workOccurrence vs claims-made chosen deliberately, not by default.
4. Jurisdiction covers your buyersExport markets included if you sell into them.
5. Exclusions and add-ons reviewedYou’ve seen the exclusions and added only the extensions your operations need.

What a broker should do at claim time

A policy is only as good as the help you get when a claim is contested. This is where a broker earns their keep, and it is fair to judge any broker — us included — on effort, not promises: do they give you a single point of contact when a claim is stuck; do they prepare and document the claim with you; do they push the insurer’s decision rather than forward an email. We call that claims advocacy our Red Carpet commitment — and the honest test is whether a broker will own the hard day, not whether they promise an outcome no one can guarantee.