What is the primary limit for XYZ Furniture's CGL policy for each occurrence?

In a commercial general liability (CGL) policy, the primary limit for each occurrence refers to the maximum amount that the insurer will pay for a single incident that results in bodily injury or property damage.

Given that the selection made is $250,000, this indicates that the specific CGL policy for XYZ Furniture has a cap on its liability exposure for any one event at this amount. This is a common structure in CGL policies, allowing businesses to manage their risk while providing a baseline level of coverage for incidents that may occur.

In this context, it’s important to recognize what the figure represents in terms of risk management for the company. A limit of $250,000 suggests that while the company is protected in the event of claims, the coverage could potentially be insufficient depending on the severity of the incident and associated damages, making it crucial for the business to assess its insurance needs carefully.

Higher limits, like those mentioned in the other choices, may be more appropriate for businesses that face greater risks or that have assets at stake, but the selected limit of $250,000 accurately reflects the maximum payout per occurrence under XYZ Furniture's policy.