Which party benefits from Coverage C - Medical Payments in a CGL policy?

• A. Third parties injured because of the insured's business operations
• B. The insured
• C. The insurer
• D. The employees

Answer: (A)

Coverage C Medical Payments is a no-fault, first‑party benefit that pays medical expenses for people other than the insured who are injured by the insured’s business operations or on the insured’s premises. Its purpose is to provide quick help to those injured, regardless of fault, and to encourage prompt treatment. Because it’s intended to assist third parties, the payment goes to the injured person (or their provider) and not to the insured. It does not cover the insured’s own medical bills, nor is it a payment the insurer makes as part of liability coverage. Employees are typically excluded because workers’ compensation covers their injuries. So the party that benefits from Coverage C is third parties injured because of the insured’s business operations.