The Commercial General Liability form provides automatic coverage for newly acquired organizations for up to how many days?

The Commercial General Liability (CGL) form offers automatic coverage for newly acquired organizations for a period of 90 days. This feature is designed to give businesses a grace period during which they can assess and manage their newly acquired entities without the immediate need to modify their insurance coverage.

This 90-day period is significant because it allows businesses time to integrate their operations and ensure that all aspects of their new acquisition are adequately protected under their existing liability policy. After this period, if the organization continues to operate or if there are specific risks associated with it, the insured would need to formally add the new entity to their coverage to maintain liability protection.

Understanding the specifics of this automatic coverage is crucial for businesses as they navigate mergers, acquisitions, or expansions. It ensures they are not left vulnerable during the transition phase, while also highlighting the importance of regular policy reviews and adjustments in response to changing business circumstances.