Acme Toys has a CGL policy. They hold a party and one of the guests has a little too much to drink. If the guest injures someone and the injured party sues the Acme Toys, the CGL policy:

• A. Will cover if the insured has Liquor Liability Coverage
• B. Will not cover
• C. Will cover if the insured has Legal Liability Coverage
• D. Will cover the claim

Answer: (D)

A Commercial General Liability (CGL) policy provides bodily injury and property damage coverage for claims arising from the insured’s premises or operations. Hosting a party is part of the insured’s operations, so if a guest becomes intoxicated and injures someone, the resulting suit can be framed as the insured’s liability for negligent hosting or oversight. The presence of alcohol at a private event does not automatically remove coverage under the CGL; liquor liability exposure is a separate concern that would require a specific liquor liability endorsement if the claim arises from furnishing alcohol in a business context. Because this claim is about general premises/operations liability from hosting the party, the CGL will respond to the suit.