Comemrcial General Liability Insurance, Part I

The supplementary payments consist of these items

-All espenses incurred by the insurer, such as feels for attorneys, witness fees, the cost of police reports, and similar items -up to $250 for the cost of bail bonds required because of accidents or traffic-law violations involving and covered vehicle -the cost of bonds to release any property of the insured's held by a plaintiff to ensure payment of any judgment that may be rendered against the insured. The insurer is not required to provide either of the bonds previously described; its only obligation is to pay the premium -reasonable expenses incurred by the insured at the insurer's request, including loss of earnings (up to $250 a day) if the insured must miss work to testify, attend court, or otherwise assist in the defense -court costs or other costs (other than actual damages) assessed against the insured in a suit -Interest on judgements awarded agiasnt the insured. In some cases, courts will award either prejudgement interest, or postjudgement interest, or both, to a plaintiff

Material Published with knowledge of Falsity Exclusion

Injury arising out of oral or written publication of material, if done by or at the direction of the insured with knowledge of its falsity, is excluded under Coverage B

Coverage B Exclusions

Some of the 15 Coverage B exclusions--those applying to contractual liability, pollution, and war--are comparable to Coverage A exclusions. The remaining Coverage B exclusions are unique because they relate to the different types of claims covered as personal and advertising injury liability Exclusions: -Knowing Violation of Rights of Another -Material Published With Knowledge of Falsity -Material Published Prior to Policy Period -Criminal Acts -Contractual Liability -Breach of Conduct -Quality of Performance of Goods--Failure to Conform to Statements -Wrong Description of Prices -Infringement of Copyright, Patent, Trademark, or Trade Secret -Insureds in Media and Internet Type of Business -Electronic Chatrooms or Bulletin Boards -Unauthorized Use of Another's Name or Product -Pollution -Pollution-Related -War -Distribution of Material in Violation of Statues

Breach of Contract Exclusion

Excludes injury arising out of a breach of contract

Knowing Violation of Rights of Another Exclusion

The form provides no insurance under Coverage B for injury caused by or at the direction of an insured who had knowledge that the act would violate the rights of another person and inflict personal and advertising injury

Expected or Intended Injury Exclusion

a. eliminates coverage for bodily injury or property damage that is expected or intended by the insured. Thus coverage does not apply if the insured intentionally injured the claimant

CGL Coverage B--Personal and Advertising Injury Liability

addresses a variety of loss exposures related to communication and interaction with the public that business encounter... insures against claims based on torts such as libel, slander, and wrongful eviction

Coverage A: Coverage Territory

applies only occurences that take place in the coverage territory defined in the polciy.The coverage territory that applies to most claims is the United States (including its territores and possessions), Puerto Rico, and Canada The coverage territory is extended to include the entire world with the respect to these: -goods or products made or sold by the named insured in the basic coverage territory -Activities of a person whose home is in the basic coverage territory but who is away for a short time while pursuing the named insured's business *** these extensions apply only if the insured's liability for damages is determined either in a suit filed in the basic coverage territory (the U.S., its territories or possessions, Puerto Rico, or Canada) or in a settlement to which the insurer agrees

Contractual Liability Exclusion under Coverage B

applies to injury for which the insured has assumed liability in a contract or agreement. This exclusion is subject to only one exception: liability that the insured would have in the absense of the contract or agreement

Contractual Liability Exclusion

b. eliminates coverage for liability assumed by the insured under a contract. This exclusion applies only if the liability would not have existed in the absence of the contract. This is, if liability for a claim could have been imposed on the insured by tort law, the exclusion does not apply, even though the insured may have also assumed liability for the claim under a contract

Liquor Liability Exclusion

c. Applies only to insureds in the business of manufacturing distributing, selling, serving, or furnishing alcoholic beverages. It eliminates coverage if liability arises from causing or contributing to the intoxication of any person, from furnishing alcoholic beverages to a person under the legal drinking age, or from otherwise violating the laws governing the sale and distriburtion of such beverages... applies only if the named insured is in the alcoholic beverage business

CGL Coverage A--Exclusions

contains 17 exclusions, labeled a. through q. Some of the exclusions eliminate coverage for exposures that are customarily insured under other policies . Other exclusions address exposures that are uninsurable or, at beat, difficult to insure 17 Exclusions: a.Expected or Intended Injury b.Contractual Liability c.Liquor Liability d.Workers Compensation and e. Employers Liability f.Pollution g.Aircraft, Auto, or Watercraft h.Mobile Equipment i.War j.Damage to Property k.Damage to your Product l.Damage to your Work m.Damage to Impaired Property or Property Not Physically Injured n.Recall of Products, Work, or Impaired Property o.Personal and Advertising Injury p.Electronic Data q.Distribution of Material in Violation of Statues EXTRA: Fire Liability Coverage

CGL policy's Coverage A Insurance Agreement

contains the insurer's promise to pay damages on behalf of the insured and to defend the insured against claims or suits seeking damages covered under the policy. A claim that meets all of the conditions in the insuring agreement is still subject to the Coverage A exclusions

Wrong Description of Price Exclusion

coverage B does not insure against injury arising out of wrong description of the price of goods, products, or services in the named insured's advertisements

Personal and Advertising Injury Liability

covers the insured's liability for "personal and advertising injury... the form defines this phrase to mean any kind of injury (such as loss of reputation, humiliation, economic loss, or even consequential bodily injury) arising out of any of several listed offenses

Workers Compensation and Employers Liability Exclusion

d. and e. Prevent the CGL form from duplicating workers compensation and similar coverages for occupational injury or disease to employees d. (Workers Compensation and Similar Laws) eliminates coverage for obligations of the insured under any workers compensation, disability benefits, unemployment compensation, or similar laws e. (Employers Liability) eliminates coverage for bodily injury to any employee of the insured if the injury arises out of and in the course of employment, thus eliminating CGL policy coverage for employee injuries that would otherwise be covered by the employers liability coverage of the standard Workers Compensation and Employers Liability Insurance Policy

CGL Coverage Form Supplementary--Coverages A and B

describes specific items that the insurer will pay in addition to damages payable under Coverage A or Coverage B supplemental payments are payable in addition to the limits of insurancre that apply to the CGL policy's coverage The insurer's obligation to pay these supplementary payments ends as soon as the applicable limit of insurance has been exhausted in paying damages for judgements or settlements

Infringement of Copyright, Patent, Trademark, or Trade Secret Exclusion

eliminates coverage for any injury arising out of the infringement of copyright, patent, trademark, trade secret, or other intellectual property rights. The exclusion does not apply to infringement, in the name insured's advertisement, of copyright, trade dress, or slogan

Pollution-Related Exclusion

eliminates coverage for any loss, cost, or expense arising out of any request, demand, or order to test for, monitor, or clean up pollutants or out of any claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, or cleaning up pollutants

Criminal Acts Exclusion

eliminates coverage for injury arising out of a criminal act committed by or at the direction of the insured

Quality of Performance of Goods--Failure to Conform to Statements Exclusion

eliminates coverage for injury arising out of the failure of goods, products, or services to conform to any statement of quality or performance made in the named insured's advertisement

Unauthorized Use of Another's Name or Product Exclusion

eliminates coverage for injury arising out of the unauthorized use of another organization's name or product in the named insured's e-mail address, domain name, or metatag, or out of any other similar tactics to mislead the potential customers of another organization

War Exclusion under Coverage B

eliminates coverage for personal and advertising injury arising or indirectly out of war in its various forms or warlike actions

Distribution of Material in Violation of Statues Exclusion under Coverage B

eliminates coverage for personal or advertising injury arising out of any action or omission that violates or is alleged to violate the Telephone Consumer Protection Act, the CAN-SPAM Act, or any other legislation "that prohibits or limits the sending, transmitting, communicating or distribution of material or information

Electronic Chatrooms or Bulletin Boards Exclusion

excludes injury arising out of an electronic chatroom or bulletin board that the insured hosts, owns, or controls

Pollution Exclusion

f. eliminates coverage for pollution liability claims related to the insured's premises and operations. The exclusion is worded broadly to encompass the many ways pollutants can enter the environment. The exclusion applies to bodily injury, property damage, and cleanup costs resulting from pollution incidents

Electronic Data Exclusion

p. reinforces the property damage definition by stating that the CGL form does not apply to damages arising out of the loss of, loss of use of, damage to, corruption of, inability to access, or inability to manipulate electronic data

Medical Payments Coverage

pays medical expenses of others in certain circumstances. It does not require the insured to be legally liable and , therefore, is not technically liability insurance. its role is to pay small bodily injury claims without having to establish liability, perhaps reducing the likelihood that an accident victim will sue the insured

CGL Coverage C- Medical Payments

pays, on a no-fault basis, the medical expenses of persons who are injured on the insured's premises or as a result of the insured's operations away from the premises not considered liability insurance, because coverage is provided regardless of whether the insured is legally liable

Distribution of Material in Violation of Statues Exclusion

q. eliminates coverage for bodily injury or property damage that arises out of any action or omission that violates or is alleged to violate the TCPA, the CAN-SPAM Act, and any other legislation "that prohibits or limits the sending, transmitting, communicating or distribution of material or information"

General Liability Declarations

seperate declarations forms for use with each of its general liability coverage forms: -the insurer's and producer's names -the named insured's name and mailing address -the policy inception and expiration dates -a condition stating, "in return for the payment of the premium, and subject to all the terms of this policy, we agree with you to provide the insurance as stated in the policy" -the limits of insurance -description of the named insured's business -rating and premium auditing business -a list of endorsements attached to the policy

Coverage C Exclusions

the CGL policy medical payments coverage does not apply to bodily injury to these categories of persons: -any insured (other than a volunteer worker of the named insured) -anyone hired to do work for an insured or for a tenant of an insured -a person injured on that part of the named insured's premises that the person normally occupies -a person entitled to workers compensation benefits for the injury -a person injured while taking part in any physical exercises, games, sports, or athletic contests

Tort Law

the branch of civil law that deals with civil wrongs other than breaches of contract

Coverage C Insuring Agreement

the coverage applies to accidents that occur on premises owned or rented by the insured, including the ways (roads, streets, paths, or passages) adjacent to such premises. The coverage also applies to accidents that occur away from the insured's premises and adjacent ways, but only if the accident results from the named insured's operations medical expenses must be incurred and reported to the insurer within one year after the date of the accident

Pollution Exclusion under Coverage B

the exclusion applies to any injury arising out of the actual, alleged, or threatened discharge of pollutants at any time. Unlike Pollution exclusion under Coverage A, the Coverage B exclusion has no exceptions

Insureds in Media and Internet Type Business Exclusion

the form provides no insurance under Coverage B for injury committed by an insured whose business is in advertising, broadcasting, publishing, or telecasting, designing or determining the content of Web sites for others; or providing internet searches, access, content, or service. The exclusion states that placing frames, borders, links, or advertising material for the named insured or others anywhere on the Internet is not considered the business of advertising, broadcasting, publishing, or telecasting

Products and Completed Operations

the possibility that an organization will be held liable because of bodily injury or property damage caused by an accident arising out of products manufactured, sold, or distributed by the organization and occuring after the products are no longer by an accident arising out of the organization's completed work, including defective parts or materials furnished with the work

Premises and Operations

the possibility that an organization will be held liable because of bodily injury or property damage caused by an accident that either occurs on the organization's premises or arises out of the organization's ongoing (as opposed to completed) operations on or off those premises

General Liability Coverage Forms

various ISO general liability coverage forms typically contains these major sections: -coverages--this section contains one or more insuring agreements and applicable exclusions, as well as supplementary payments in some forms -who is an insured--this section describes the individuals and organizations that qualifty as insureds -limits of insurance-- this section explains how the limits of insurance apply to covered claims -Conditions--this section contians various conditions that the insurer and insured must abide by -Definitions--this sections defines certain words and phrases used in the coverage form

Prejudgement Interest

interest that may accrue on damages before a judgment has been rendered

Bodily Injury and Property Damage Liability insuring agreement

it covers the insured's liability for bodily injury and property damage arising out of a wide range of sources

Damage to Property Exclusion

j. eliminates coverage for damage to any of these: -property owned, rented, or occupied by the name insured -premises the named insured has sold, given away, or abandoned if the damage arises out of any part of such premises -property loaned to the named insured -personal property in the care, custody, or control of an insured -That particular part of any real property on which work is being done by the named insured or any contractor or subcontractor working for the named insured if the damage arises from work -That particular part of any property that must be restored, repaired, or replaced because the named insured's work was incorrectly performed on it

Damage to your Product Exclusion

k. eliminates coverage for any damage to the insured's product that results from a defect in any part of the product

Damage to your Work Exclusion

l. similar to exclusion k., but it applies to claims for property damage to the insured's work rather than to the insured's products. The exclusions applies only to completed work--not to work that is still being performed when the property damage occurs. Exclusion l. does not apply to claims if either the damaged work or the work from which the damage arose was performed for the insured by a subcontractor

Damage to Impaired Property or Property Not Physically Injured Exclusion

m. eliminates coverage for claims for property damage to "impaired property" or property that has not been physically injured if the damage arised from a defect in the insured's product or work or failure of the insured or anyone acting on behalf of the insured to complete a contract or agreement in accordance with its term

Recall of Products, Work, or Impaired Property Exclusion

n. eliminates coverage for any loss, cost, or expense resulting from loss of use, withdrawl, recall, inspection, repair, replacement, adjustment, removal, or disposal of the insured's product, the insured's work, or impaired property

Personal and Advertising Injury Exclusion

o. eliminates coverage--under Coverage A only--for bodily injury arising out of "personal and advertising injury." Bodily injury resulting from a personal and advertising injury offense is covered under Coverage B--Personal and Advertising Injury Liabilty-- of the CGL coverage form

Components of a General Liability Coverage Part

-one or more general liability declarations forms -one or more general liability coverage forms -any applicable endorsements

Fire Legal Liability Coverage

The Coverage A exclusions section concludes with this statement, which provides what is commonly called fire legal liability coverage: exclusions c. through n. do not apply to damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner. A seperate limit of insurance applies to this coverage as described in Section III-Limits of Insurance

Material Published Prior to Policy Period Exclusion

form excludes any injury arising out of releasing of material whose first publication took place before the beginning of the policy period

Aircraft, Auto, or Watercraft Exclusion

g. eliminates coverage for bodily injury and property damage arising from the ownership, maintenance, or use (including loading or unloading) of any aircraft, auto, or watercraft

Mobile Equipment Exclusion

h. eliminates coverage for these: -the transportation of mobile equipment by an auto that is owned, operated, rented, or borrowed by an insured -the use of mobile equipment in a prearranged racing, speed, or demolition contest or in a stunting activity

Commercial General Liability (CGI) Coverage Form

help you face the possibilty of incurring liability losses arising out of their premises, operations, products, and other sources.. CGI covers these two broad categories of liability loss: -Bodily injury and property damages liability -Personal and advertising injury liability

War Exclusion

i. eliminates coverage for bodily injury or property damage arising, directly or indirectly, out of war in its various forms and other warlike actions

CGL Insurer's Duty to Pay Damages

insuring agreement imposes seven conditions in the insurer's duty to pay all damages, all of which must be fulfilled for a claim to be covered

Postjudgment Interest

interest that may accrue on damages after a judgment has been entered in a court and before the money is paid