Los Angeles Claims Adjuster Property and Casualty Exam 2025 – 400 Free Practice Questions to Pass the Exam

In commercial general liability (CGL) insurance, certain acts are explicitly excluded from coverage. War is one such act included as an exclusion under CGL policies. This is because the impacts of war, including acts of terrorism, civil war, insurrection, and other related activities, can result in catastrophic losses that are considered unmanageable and unpredictable by insurers. War-related activities often lead to extensive damage and financial consequences, which is why insurers provide this exclusion to mitigate their risks associated with such events.

Other acts like sudden accidents, management errors, and theft of property may fall under different coverage terms, and while they can lead to claims, they are not categorized the same way as acts of war in the context of CGL policies. Thus, the exclusion of war helps define the limits of coverage and the types of risks that insurers are willing to insure against.