4-B Commercial General Liability Insurance

CGL covers liability for

-Bodily injury/property damage resulting from a business premises and its operation -Damage to a premises used or rented by the insured -Products and completed operations -Acts of others employees, agents, contractors acting on behalf of business -Contracted responsibilities: insured agreed to take on liability -Personal and advertising injury: injury other than bodily injury resulting from actions of the insured

Policy Territory

-CGL policies cover occurrences in US, Puerto Rico and Canada, their airspace, and territorial waters -Products Liability is worldwide as long as the product was made in US, Puerto Rico or Candada

CGL Conditions Page

-Contains provisions the policyholder must meet as a condition of coverage -Highlights the rights and duties of insured and insurer -States the rights of each regarding cancellation, changes, lawsuits

Advantages

-Contractor cannot cancel coverage without knowledge of hiring business -Hiring business policy limits are not effected by claims against work of contractor -Provides primary coverage for all claims related to work of contractor -Can be used on projects likely to produce claims -Protects named insured from negligent acts of incompetent contractors

Damage to Premises Rented by You

-Coverage A usually excludes loaned or rented properties -Damage to Premises rented by You lifts this exclusion -it applies to properties that the insured rents for 7 or fewer consecutive days

Operations Liability

-Covers bodily injury and property damage when working outside premises -Important for companies like plumbers, contractors

Pollution Liability Coverage

-Covers bodily injury or property damage caused by pollutants released into air, water or land -Covers pollution normally excluded by CGL -Claims made trigger -pollution incidents include release of pollutants -At insured site -Off site due to pollutants emanating from site -During transportation -At non owned disposal site

Other Insurance

-Divides responsibility for claims among all applicable policies -Claims made form pays after any non claims made form

Establishments that may require Liquor Liability

-Grocery stores, hotels, casinos, golf courses, department stores, inns and motels, comedy clubs

Per Occurrence Limit

-How much an insurer will pay for any one occurrence -Always subject to aggregate limits

Vicarious Liability

A company can be held responsible for the actions of a hired contractor

Commercial general Liability Insurance (CGL)

Protects business form a wide variety of financial hazards associated with normal business operations

Temporary Worker

Temporary fill-ins and seasonal workers

Trigger

The event that initiates coverage

Product Liability

The insured liability for bodily injury and property damage caused by the use of products made or sold by insured

Completed Operations Liability

The insured liability for work completed away from the insured premises Ex. The coverage would apply if a contractor is sued for the collapse of a staircase he had completed in a clients home Work is complete the moment that -the insured has fulfilled the terms of an agreement or -Any portion of the work is used for its intended purpose

Leased Worker

Worker hired though a labor leasing firm

Employee

Works for insured under contract -Includes leased workers -Does not include temp workers

Wrongful Entry or Eviction

Wrongful Entry: When a landlord uses improper means to repossess real estate or rented space. This may also involve invasion of privacy Wrongful eviction: When a landlord or shop owner evicts a person from public space without cause

Your Product

what the insured makes, sells, handles or distributes

Pollution Liability Limited Coverage Form

-Bodily injury and property damage only

Elements of a CGL policy

4 Elements 1. Declarations/Definitions 2. Insuring Agreements/Coverage Forms 3. Conditions Page 4. Exclusions

Liquor liability Coverage Form

-Alcohol-related occurrences are excluded in the regular CGL policy -An added liquor liability coverage endorsement fills this gap -Coverage includes cases involving over service or illegal service to minors

Coverage C Exlusions

-Any insured -employees of the insured -Tenants of the insured -Athletic contest, games, physical challenges, or sporting events -Injuries resulting from completed operations Insurer can require the injured party to see a physician chosen and paid for by the insurer

Pollution Liability Broad Form

-Bodily injury and property damage -Clean up costs

Exclusions to Coverage B liability

-Knowingly publishing, disseminating, or spreading false information to the public -Knowing violating the copyrights of another -Infringing on copyright, patent, trademark, or intellectual property rights outside of advertisements, whether criminally or not -failing to adhere to price, quality and performance claims -Acts committed prior to the current policy period -All claims if the insured is in advertising, broadcasting, or publishing business, or involved in website design or web search services -Electronic chatrooms or bulletins boards

Difference between Tails and Occurrence Form

-Occurrence coverage lasts forever for damage or injury during the policy period. Tails last only for a relatively short period -Tails require premiums from the insured as long as policy is extended -Two kinds -Basic extended -Supplemental Extended

Coverage Basics

-Purchased by the contractor but the hiring business is the insured -Specific to a single project and place -Expires when project is completed -Only uses the occurrence form

Duties of Insured in the Event of an Occurrence

-Report details to the insurer promptly; -Who was hurt, when and how -Names of relevant witnesses -Notify insurer promptly if sued -Cooperate with insurer's claim process -Forward legal papers -Authorize insurer to obtain relevant materials -Assist the insurer in enforcing subrogation -Do not make voluntary payments on a claim on behalf of the insurer without the insurers authorization

Owners and Contractors Protective Liability

-Responds to all liability claims filed agaisnt the hiring business arising out of work performed by the independent contractor -Protects the hiring business from losses due to contractor's work

Claims Made Form

-Triggered when the claim is filed -Covers any claim filed during the policy period, no matter when the damage or injury occurred -Insurers can price premiums to reflect current risks of lawsuit awards

CGL does not cover autos

-Vehicles designed for travel on public roads -These require a Business Auto Policy

CGL does cover mobile equipment

-designed for use principally off public roads -Primary purpose is the machinery attached, not transportation -Examples include bulldozers and forklifts -If a small truck is used exclusively within warehouse or factory premises, it may qualify as mobile equipment

Insured contracts

-lease of premises -sidetrack agreements -easement or license agreements -An obligation to indemnify a municipality -Elevator maintenance contracts -Any contract in which the policyholder assumes the tort liability of another party for bodily injury or property damage

CGL Coverage Forms

1. Coverage A -Bodily injury and property damage -Premises and Operations Liability -Products and Completed Operations liability -Contractual Liability for insured contracts 2. Coverage B -Personal and advertising injury liability 3. Coverage C -Medical payments to others' 4. Damage to premises rented by you

3 Kinds of Hazards (Coverage A)

1. Premises and Operations 2. Products and Completed operations 3. Contractual Liability for Insured Contracts

3 Types of Product Liability Claim

1. Strict Liability: any defect in safety is manufacturer's fault 2. Negligence: Manufacturer did not exercise a reasonable amount of caution 3. Breach of warranty: insured failed to notify public of a known safety hazard, or failed to deliver the quality of item advertised

Occurrence

A sudden accident, or repeated exposure to something that causes injury or damage

Laser Beam Endorsement

Allows an insurer to exclude specific types of accidents, products, work, or locations from CGL coverage

Advertising Injury

An Advertising Injury means a third party suffered damages as the result of the insured party advertising their gods and/or services in a public arena Advertising injury may take the form of -Libel and slander -Copyright infringement -Stealing advertising ideas

Advertisement

Anything shown or said to the public to attract new customers

Exlusions

Autos, watercraft, contractual liability, war, liquor liability, workers comp, property in care of insured, products, completed operations

Extended Reporting peroids

Basic Extended -Automatically applies to every canceled or expired claims made policy -Extends coverage for occurrences 60 days past policy period -Extends window for making a claim for 5 years past occurrence Supplemental Extended -Extends coverage for occurrences 60 days past policy period -Extends window for making a claim forever -Insured must request coverage and pay the premium within 60 days of the policy period

Volunteer Worker

Donates labor without compensation from insured

No Limit on Legal defense

CGL Covers all legal expenses without limit, up until judgement or settlement

Tail Coverage Overview

Claims made coverage can be extended by tails, or tail cover

Claims Made CGL Policies

Coverage triggered by claim

Occurrence CGL Policies

Coverage triggered by occurrence or accident

Premises Liability

Covers bodily injury and property damage on -Premises owned, rented or leased by insured -Ways immediately adjoining

False Arrest

False Arrest, detention or imprisonment: a store detaining someone unjustly because of suspected shoplifting Malicious Prosecution: Suing someone without probable cause. Such a claim can only be filed after the insured loses the original lawsuit

Impaired property

Items damaged by defects in insured's product or work -ex. stereo destroyed by defective Cd -Includes unfinished contracts or agreements

Libel & Slander

Libel: Written words that falsely damage another's reputation Slander: Spoken words that falsely damage another's reputation

Contractual Liability Example

Mae's cafe wants to hang a sign over a city sidewalk. To do so they will need to sign a contract holding the city blameless for any injury the sign might cause. The liability insurance covers this contractual liability

Aggregate Limits

Maximum amount a policy will pay for certain specified types of claims over the course of the policy period 1.Products Completed Operations Aggregate: The maximum amount the policy will pay to satisfy claims regarding products and completed operations only 2. General Aggregate: The maximum amount the policy will pay out over the policy period for Coverage A, B, and C except for products and completed operations

Coverage C Medical Payments

No-Fault coverage that pays: -medical -dental -hospital -nursing -funeral costs resulting form an occurrence on insured's premises, or from its business operation

Pro and Cons of each Coverage Form

Occurrence Form: -Lower risk for businesses -Higher risk for insurer -Higher premiums Claims made form: -Higher risk for businesses -Lower risk for insurer

Your Work

Operations done by insured includes -Parts -materials -equipment used in work -warranties and instructions

General Aggregate Limit

Payment under these coverages are all under one aggregate -Coverage A: Presmises and Operations Liability only -Coverage B: Personal and Advertising Injury liability -Coverage C Medical Payments to other -Damage to premises rented by you

Per Occurrence Sub-limits

Per Occurrence Limit -Personal and Advertising Injury Limit: The maximum amount the insurer will pay for personal and advertising injury to any one person or organization medical payments limit: The maximum amount the insurer will pay for bodily injury sustained by anyone person -damages to premises rented by you

Occurrence Form

Triggered by when the actual injury or damage occurred Covers events that happened during policy period, no matter when claim is made Ex. An occurrence form CGL, policy peroid 1/1/08 - 1/1/09 will cover injury that occured in '08 even though the injured party does not make a claim until 2013.