Sole Proprietor Is Named Insured under CGL Policy

A woman who is the sole proprietor of a cleaning business broke artwork she was cleaning in a client's home. The sole proprietor has a CG 00 01 12 04, commercial general liability Coverage form. Would she be covered under this policy for the broken artwork?

Pennsylvania Subscriber

Under the “Who Is An Insured” section of the CGL policy, the sole owner of a business is included as an insured. However, coverage is voided for property damage to property in the care, custody, or control of “'you' and any of 'your' employees.” “You” and “your” refer to the named insured, who, in a sole proprietorship, would be the sole proprietor. Thus, this loss would be excluded from coverage because the named insured broke artwork that was in her care, custody, and control.

 

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