Life SciencesLiability
Contact
LimitsStandard / Universal

Commercial General Liability — $1M / $2M

What this clause says

Commercial General Liability insurance with limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate.

What this means in plain English

Standard commercial liability coverage at the most common limit. This is the floor — almost every pharma/biotech sponsor MSA includes this language verbatim.

What it means for a CDMO program

You almost certainly already carry this. The trap is the aggregate: if you have multiple sponsors all requiring $2M aggregate against the same shared limit, you can exhaust it. Watch for "per project" or "per location" aggregate endorsement requirements buried later in the MSA.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • cgl › aggregate is at least $2M → Compliant: Your CGL aggregate meets the $2M requirement.
  • cgl › aggregate is at least $1M → Borderline: Your CGL aggregate is below $2M — fine for occurrence but may not satisfy the aggregate.
  • cgl › aggregate is not set → Gap: No CGL aggregate indicated.

See this in your MSA

Pre-loaded with this clause selected.

Run the Decoder

Related clauses

Questions about limits

Commercial General Liability — $1M / $2M — common questions

Is the $1M / $2M CGL limit negotiable?

+

Almost never. This is the universal floor in pharma and medical device sponsor MSAs. Negotiate other clauses instead.

What if multiple sponsors require $2M aggregate against the same shared limit?

+

You risk aggregate exhaustion. Solutions are a per-project or per-location aggregate endorsement, or a higher base aggregate ($3M-$5M) priced at renewal.

Does my umbrella satisfy the $2M aggregate?

+

Only if the umbrella drops down for the type of claim. Most umbrellas drop down for general liability but exclude products if the underlying CGL has manufacturing exclusions. Verify with your broker.