Commercial Package Policy (CPP)

Contingent Business Interruption Insurance (Business income from Dependent Properties)

. It covers losses of income incurred by a loss on a Dependent Property that the insured needs in order to stay in business. The coverage applies until the Dependent property is rebuilt. covers loss or damage to property that the insured does NOT own, operate or control The business income coverage form may be purchased with or without coverage for extra expense. Of course, extra expense coverage may also be purchased alone EX. hoops embroidery depends on Major City T-shirts for materials and services. -Major city T-shirts, the contributing location had a fire loss, which in turn puts Hoops embroidery out of business until supplier rebuilds -the resulting loss of income will be covered by the contingent business interruption insurance endorsement

7 Commercial Insurace Policy Types

1. Commercial Property 2.CGL 3. Commercial Crime 4.Equipment breakdown coverage 5. Commercial Inland Marine 6. Farm Coverage 7. Commercial Auto any of these can be bought alone as monoline coverage, in combiantion of any of the above, making it a CPP

Coverage A (buildings)

A limit of insurance must be on declarations page. This form describes a building to include any: -permanently installed equipment (such as AC systems), -personal property used to maintain or service the building (e.g fire extinguishers) -and built-in appliances. Vegetated roofs are NOT considered part of building

Coverage B (Business Personal Property)

A limit of insurance must be such on declarations page or Coverage B does NOT apply' There can be Coverage A without Coverage B, vice versa, or both. Coverage B covers business personal property: -in or on the described building, -or within 100 FT of the described premises Coveage includes: -Contents of insured -equipment -merchandise -Business Inventory -Leased equipment -Tenant's Improvements - Furniture

Commercial Package Policy (CPP)

A multi-peril, multiline policy that provides a broad spectrum of Property and Casualty coverages for large businesses coverages available can be written together in a single contract (package policy) OR they can be wrriten separately as single coverage (Monoline) .

CPP Additional Coveraegs

Additional Coverage: 1. Debris Removal, 2, Removal of business personal property to a place of safety during a covered loss, and it is covered up to 10 days, 3.Up to $1000 for fire department service charge, 4, Up to $10,000 for cost of extracting pollutants caused by covered loss.

Provisions are made for two types of ERP

Basic ERP (or Mini Tail) Supplemental ERP

Special Cause of Loss Form

Covers all risks of physical loss to both the building and business personal property, except what is excluded. Since theft is NOT excluded, policy form contains special max limits for theft of certain business personal property, -such as a max of $2500 for furs, jewelry, watches, and precious stones

Commercial Property Componenets

Declarations page One or more Property Coverage Forms One or more Cause of Loss Forms Property Conditions Any applicable endorsements added

Occurence Form Example

EX. a customer slips and falls on June 15th on business premises due to negligence. Policy expires on June 30th and insured does not renew it. On Oct 1st, the customers sues insured for negligence. Since policy was in force when accident occured on June 15th, the insurance company must defend the business and pay the claim if the insured was negligent, even though the policy expired on june 30th

Coverage C (Personal Property of Others)

Property that was left in the insured's care, custody, or control Remember, the CGL portion of the CPP contains an exclusion under PD liability for damage to property of others left in the care custody or control of the insured Clients can obtain coverage for the property of others left with them by declaring a limit on the declarations page and paying an additional premium

Special Cause of Loss Form Exclusions

Wear and tear Deterioration Rust Dry rot Industrial smoke Pollutants Mechanical breakdown Settling. Shrinking, Expansion Vermin, Rodents, insects Domestic animals Mold

Retroactive Date- Claims Made Form

- Date before which a claims-made policy will not pay - Provides some measure of protection against previous losses that may have occurred before the claims-made form was written - Date is listed in the CGL Declarations - Insured has 3 options for the retroactive date: 1. use the same date as the policy effective date 2. use an earlier date that then policy effective date 3. use no retroactive date

Named Perils Form: Basic and Broad Casue of Loss

1. Basic cause of Loss -Includes coverage for 11 named perils included in the REV FL SHAW acronym -also includes, sprinkler leakage, sinkhole collapse, and volcanic action 2. Broad Cause of Loss -Covers all perils covered in the Basic Form plus 3 additional perils -Named perils include REV FL SHAW and WWF-weight of ice, snow, or sleet, water damage other than flood, and falling objects -Similar to the broad form DP-2 we studied earlier -Still a named peril form, but has more perils than the basic form, so premium is higher -Form also provides additional coverage for breakage of glass, and collapse of structure

Commercial Property Cause of Loss Forms

2 Cause of Loss Forms: 1. Named Perils Form -Basic Cause of Loss -Broad Cause of Loss 2. Special Cause of Loss Form (All Risk Policy) The commercial building and personal property form really doesn't contain any perils Form is descriptive in nature, describing the types of buildings and business personal property that may be covered To determine which perils are covered, the insured must add at least one Cause of Loss Form to the policy

Legal Liabilty Form

CGL policy provides limited coverage for damage to property of others in the care, custody and control of the insured, ONLY if caused by a fire. commercial property policy requires insured to insure the property of others in the custody of the business as a separate limit and subject to certain perils this form is the only way to completley cover signifincant real or personal property legal liability exposures. Highlights of the Legal liability form includes: -coverage is available for building and/or personal property -limit for this coverage does NOT affect any other limits -the cause, or causes of loss can be selected based on contractual obligations -includes supplementary payments that provide defense expenses outside the limits of insurance.

Insurers Provide one or more ERPs if the CGL Policy is:

Canceled or NOT renewed Renewed with an advanced retroactive date Renewed by an Occurrence form

The CGL forms provide the following three coverages:

Coverage A (BI and PD) Coverage B (Personal Advertising Injury) Coverage C (Medical Payments to Others)

Extra Expense Coverage Endorsement

Endorsement that can be added to CPP that covers indirect loss. This Endorsement is utilized for businesses that must continue to operate in order to stay in business. ONLY pays for expenses that are over and above normal business expenses. -EX. monthly expenses are $5000 a month. -however, a fire occurs causing you to temporarily move your business to a new location where monthly expenses are now $6000 -the extra expense policy endorsement will only give you $1000 a month -this is becuase it only covers expenses that are OVER and above normal business operations, -thus, it will only cover expenses that are greater than $5000 a month May also be added to a CPP, or it can be combined with the Business Income Coverage Form This Endorsement coverage does not cover your loss of business income, it covers the extra expense incurred by the business because you had to move to a temporary location to continue business. NO deductible General rule is that if a business must shut down due to a loss, it needs Business Income Coverage -However, if the business must continue to operate after a loss it needs the Extra Expense Coverage

CGL Coverage A Exclusions

Expected and intentional acts Liquor liability Any obligation of the insured under the Workers compensation laws Any liability arising out of the ownership, use, loading, or unloading of any aircraft, auto, or watercraft Damage to property the insured owns, rents or occupes Damage to personal property in the insured's care, custody or control Damage to insured's product arising from the product itself Damage to insured's work PD to impaired property Product recall Employment related practices Any liability relating to pollution. -However, an exception to this exclusion will provide coverage for pollution from building heating, cooling, or dehumidifying equipment. ' -This exception covers BI sustained inside a building and caused by smoke, fumes, capor, or soot from equipment used to heat, cool, or dehumidify the building. -This includes equipment used to heat water that the building's occupants and guests use -Coverage only applies to injuries sustained inside the building. Does NOT apply if same events release smoke, fumes, vapor, or soot OUTside the building that injures a person passing by

Supplmentary payments

In addition to limits, are also included in the CGL Insurer agrees to pay, with respect to any claim or lawsuit it defends under Coverage A or B: -all expenses it incurs (such as legal fees), -all reasonable expenses incurred by the insured at the insurers request, including loss of earnings up to $250/day, -cost of bail bonds -bonds to release attachments, -and any interest that accrues after entry of a judgement BEFORE the claim is paid by an insurance company

Coverage B (Personal and Advertising Injury Liability) Exclusions

Many underwriters deny Personal and Advertising liability coverage for media businesses such as -TV and radio stations, -newspapers, -magazines, -and search engine websites. Coverage is also excluded for any injury caused by: -electronic chat rooms -bulletin boards -or any unauthorized use of another's name or product

Coverage C (Medical Payments to Others):

No-fault coverage Coverage applies on a per person basis Very similar to medical coverage on a HO policy Purpose is to prevent lawsuits Applies only to others, NOT the insured or employees If injury took place within policy period and is reported within 1 year, medical coverage applies to any necessary: -medical, -surgical -dental services -funeral services if death results from injuries sustained Coverage excluded for injury to employees or anyone injured while: -participating -practicing, -or instructing any athletic activities, exercises, games, sports, or contests

Owners and Contractors Protective Liability

Part of a commercial general liability policy that protects an owner or general contractor against liability arising out of the acts of contractors or subcontractors. It is also known as "independent contractors liability" coverage. Fire legal liability will extend coverage for fire damage to that portion of a leased premises in care, custody, and control of insured, aka "damage to premises rentted to you" This is why most general contractors require subcontractors to have their own insurance and name the general contractor on their policy as an additional insured Fire Legal Liability (Damage to Premises Rented to You)- coverage of a tenants liability for damage by fire to the rented premises the tenant occupies. -extends coverage for fire damage to that portion of a leased premise in the care, custody, and control of the insured. -This is now known as Damage to Premises Rented to You

Gemeral aggreate limit

The most that will be paid for the sum of Coverages A, B, and C except for damages arising out of the products-completed operations hazard - This limit can be modified by endorsement so that it applies separately to each of the insured's locations or projects

Basic ERP (mini tail)

automatically provided wiout additional premium charge begins at end of policy period and provides an extra 60 day period for reporting any claims that occured AFTER retroactive date and during policy period

Premises and operations of Business liabiliy exposure

- One of the most important - Liability arising out of the business location or the activities of the business - This includes liability for BI, PD, and personal and advertising injury

Prodcuts/Completed operations aggregate limit

- Separate limit that represents the most that will be paid under Coverage A because of injury and damage arising out of the products-completed operations hazard

per occurence limit

- The most that will be paid for the sum of damages under Coverage A and C because of all BI, PD, and medical payments arising out of any one occurrence - Limit is subject to either the general aggregate limit or the products-completed operations aggregate limit, whichever is applicable

Occurence form

.covers any BI or PD that occurs during the policy period, regardless of what claims are made. Most CGL insurance is written on this kind of form. An occurrence policy will respond to claims that come in--even after the policy has been canceled-- as long as the incident occurred during the period in which coverage was in force. Lifetime coverage for policy period, regardless of when claim is reported No increase in premium unless there is a change in occupation or rating category No "tail" necessary because policy provides lifetime coverage Insurer is open to future claims for an indefinite period of time. Coverage applies to all claims that OCCURRED during the policy period, even if they are not turned in until much later To solve this problem insurers introduced Claims-Made policy forms

6 Common Policy Conditions

1. Cancellation -can do this by a written notice in advance by either side, with appropriate refund of unearned premium 2. Policy Changes -requires mutual consent and endorsement attachment to policy 3. Audit by Insurer - insurer may examine books and adjust premium during and up to 3 years after the policy period 4. Inspection by Insurer -insurer can establish insurability and determine proper premium charges at renewal 5. Premium -insured is responsible for paying all premiums 6. Transfer of Rights -no assignment without permission of insurer, except at insured's death

4 Componets of a CPP

1. Common Policy Declarations 2. Interline Endorsements (as needed) 3. Two or More Coverage Parts 4. Common Policy Condtions

Summariy of Claims made and Occurence Forms

1. Occurrence Form, -if incident occurred during the policy period, that policy will respond regardless of when the claim was turned in. 2. Claims-made form, -the incident MUST occur after the retroactive date and be reported during the policy period. -An ERP of 60 days is automatic at the end of the policy and if that is not long enough, the insured may purchase a Supplemental ERP. -Once a Supplemental ERP is purchased, it can NOT be canceled, altered, or renewed.

11 Commercial Property Endorsements

1. inflation guard Endorsement 2. builders risk Endorsement 3. business income covergae form (business interruption) Endorsement 4. Contingent Business Interruption insurance Endorsement (Business Income from Dependent Properties) 5.Extra Expense Coverage Form Endorsement 6.Glass Coverage Form Endorsement 7.Earthquake Endorsement 8. Value Reporting Endorsement 9. Peak Season Endorsement 10. Ordinance or Law Coverage Endorsement 11. Spoilage Coverage Endorsement

Commercial Property Conditions

Co-insurance on Commercial property insurance works the same way as Dwelling Policies and HO policies, but the insured may select the co-insurance percentage when buying the policy It is NOT fixed at 80%, as it is on personnel policies Co-insurance runs as lows as 50% to as high as 100% However, the higher the co-insurance percentage selected, the lower the rates The deductible is $500 per occurrence, regardless of the number of buildings or contents affected by loss Insured may select higher deductibles, which lowers the premium Deductibles are applied AFTER the co-insurance penalty, if any, has been calculated Claims Settlement on Commercial Buildings and Personal Property Forms are on an ACV basis (Replacement cost - Depreciation) -although RC coverage is available as an option for an additional premium

Commercial Property Coverage Form

Coverage A (Buildings) Coverage B (business personal property) Coverage C (personal property of others) ** any of the 3 coverage forms can be purchased by themselves

Builders Risk Form Endorsement

For companies that builds commercial structures. Coverage increases over time because when building a commercial structure, it's not going to be fully completed until some time. Claims are paid on ACV value, Replacement cost is not available for this form Builders Risk Form Coverage automatically gets terminated whenever the insured's builders interest ceases, when the property is sold, or 90 days after construction is completed, because this form is for commercial buildings under construction.

5 Extensions of Coverage and Co-insurance Clause

If you carry at least 80% Coinsurance for your Commercial Building and Personal Property Form, you are granted 5 extension of coverage with no extra premium as an additional amount of insurance above policy limits: 1. Newly Acquired Property Extension -included with purchase of both Coverage A + B -Up to 25% of Coverage A limit, with a max of $250,000 for each new building, up to 30 days . -10% of Coverage B limit, with a max of $250,000 for up to 30 days. 2. Personal property of others in the insured's care, custody, control extension -included with purchase of Coverage B -up to max of $2,500 available 3. researching, replacing, or restoring lost information on valuable papers and records, including those existing in electronic media covergae extension: -included with purchase of Coverage B -up to max of $2,500 available 3. Business Personal Property that is temporarily off premises, -up to max of $10,000 4. Outdoor Property coverage extension includes: -fences, -antennas, -signs that are NOT attached to the building, -trees, shrubs, and plants with max of $1,000, but no more than $250 for any one tree, shrub, or plant

Commercial Property Insurance

Insurance that covers commercial buildings and their contents against various types of property loss. can be issued as a monoline policy or as part of a CPP

Business Income Coverage Endorsment (Business Interruption Form)

May also be added to a CPP. this applies to losses and expenses related to an interruption of normal business operations at the premises described in the declarations Both the Commercial Building and Personal Property Form and the Builders Risk Form involve coverage for direct osses, in which a covered peril actually damages the insured property However, perils that cause direct damage can also cause consequential (indirect) losses, sometimes called time element losses Time element loss means the amount of the loss is directly linked to the time it takes to repair or rebuild the damaged property -However, indirect losses (time element) are not covered unless the peril causing the direct loss is covered first Only losses incurred during a period of restoration are covered. -The period of restoration begins on the date that the direct physical loss occurred, and ends on the date that the damaged property should be repaired, rebuilt, or replaced by the insurance company. Expiration of the policy does NOT shorten the period of restoration Business Income Coverage pays the actual loss of business income, which is defined as -net profit or loss before taxes PLUS continuing operating expenses Purpose of the coverage is to restore the insured to the position that would have existed had there been no disruption of operations Care must be taken when writing this coverage to make sure that the policy limits are adequate to cover the insured if the loss comes at the worst possible time Some businesses do 75% of their annual sales during the holiday season Since sales figures are NOT level throughout the year, some insureds prefer coverage to be written on an agreed amount basis, which may be used to lock in full coverage for losses up to the policy limit Reporting forms (worksheets) must be filed showing the insured's previous and projected profit and loss figures on an annual basis.

Commercial Building and Personal Property Form Exclusions

Money Securities Animals Automobiles Growing crops (does NOT include laws or growing plants that are part of a vegetated roof) Boats Airplanes Bridges Roadways Walks Patios Paved surfaces Contraband Cost of excavation grading or backfilling Foundations And Personal property while airborne or waterborne Retaining walls (a wall that holds back earth or water) Bulkheads (dividing wall or barrier between compartments in a ship, plane or other vehicle) Pilings Piers Wharves or docks Underground pipes Flues or drains Electronic data on any kind of electronic media Floor Earthquake Off-premises power interruption Ordinance and law costs Intentional acts and neglect

Ordinance of Law Coverage Endorsement

Most property insurance forms exclude loss resulting from Ordinance or Law. If you add this Endorsement, your insurer will pay for the loss of Ordinance or Law. For example: You own a really old building. The building gets damaged, and so you need to repair it. However, since times have passed since the building was first built, laws have changed such as buildings are required to have wheelchair lift or certain requirements for the parking lot. If you don't have this Endorsement, the insurer won't pay for the cost of having to rebuild the building with the required terms set by law, because you would have to pay out of pocket for those required my law. -But if you have this Endorsement, the insurer will pay for the loss of money created by Ordinance or Law

Coverage B - Personal and Advertising Injury Liability

Personal and Advertising Injury liability does NOT cover BI or PD covers personal injury arising out of one or more of the following: -libel -slander -false arrest, detention, imprisonment -malicious prosectuion -wrongful eviction from wrongful entry into, or invasion of the rights of private occupancy of a premises that a person occupies on behalf of its owner, landlord, or lessor Adveristing Injury liability means: -misappropriation of advertising ideas or style of doing business -infringement of copyright, title, or slogan

Supplemental ERP Claims-Made form

Provides an unlimited extension of the reporting period, although the event causing the claim must still occur between the retroactive date and the policy expiration date This ERP takes effect at the end of either the 60 day or 5 year ERP whichever applies; - insured must request the endorsement and pay an additional premium -Midi Tail- ERP longer than 60 days, but not indefinitely. -Maxi Tail- allows claims to be made indefinitely after the expiration of a "claims-made" liability policy

Glass Coverage Endorsement

Provides comprehensive glass coverage for commercial plate-glass, frames, lettering, and ornamentation Coverage for glass does not apply if building has been vacant for more than 60 consecutive days Usually paid out on ACV basis

Condo Associaton Coverage Form

The following property is covered while located within a unit and without regard to ownership: -Fixtures -improvements -Alterations that are part of the building or structure -Any appliances for refrigerating, ventilating, cooking, dishwashing, laundering, security, or housekeeping -However, this property is covered only if the Condo agreement states that the Associations insurance must cover them. Condos do NOT come in one size or shape Residential condos can be apartment buildings, multi-unit dwellings, or even single-family dwellings -Commercial condos may house offices, warehouses, or even manufacturing operations -Some condos may include both residential and commercial unit-owners The key is shared ownership of the building and common areas by the individual unit-owners and the codo agreement and bylaws that contractually bind the unit-owners Coverage is provided based on the association agreement and bylaws and property ownership Most of a single-unit owners property is NOT eligible for coverage Covers the buildings, permanent fixtures, and facilities. -Does not Cover Personal Property owned by the Condo Unit Owner (instead it would be insured under HO-6)

Earthquake endorsement

This form must be added to one of the three Causes of Loss Form, it cant be purchased by itself This form defines all earthquake shocks and any subsequent volcanic eruptions occurring within a 168-hour period as a single event This means that a policy that expires during this 168-hour period would still cover shocks or an eruption following the initial event, as long as it began while the policy was in force. This adds two perils that are excluded in the other causes of loss forms. -Earthquake -and Volcanic Eruption

Insureds of a CGL Policy

Those Insured on a CGL will be designated on the declarations page as a(n) Individual-- you and your spouse are insureds Partnership-- you, your spouse, your partners, and their spouses are insureds Corporation-- you, your executive officers, your board of directors, and your stockholders are insureds

Peak Season Endorsement

Used to increase coverage only temporarily for businesses personal property for businesses that have seasonal fluctuations . For example, ski shops during winter have a lot of sales and thus need more insurance coverage. But anytime besides Winter, they don't have a lot of sales so they don't need as much coverage. Peak Season Endorsement may cover the temporary increase for up to 30 or 60 days

Extended Reporting Period (ERP) (or Tail Coverage)

claims that may be turned in after policy period ends creates a problem. -it can expose a client to situations that are NOT covered. -thus, The Extended Reporting Period (ERP) was created to solve this problem Provides coverage for claims made after policy expires date if: -claims made form is canceled or NOT renewed -insurer reviews or replaces form with insurace that has retroacctive date later than date shown in declarations of currennt forms -insurer renews or replaces form with an occurence form -Purchasing this coverage for a specific time period does NOT reinstate the policies aggregate limit of liability -The ERP or "tail" only applies to BI and PD that occured after the retroactive date and was reported during the policy period or the ERP -Claims first received during any ERP are treated as if they had been made on the last day of the policy period. -Once in effect, an ERP can NOT be cancelled

Common Policy Declarations Page

contains: -names of the parties to the contract, -the policy period -a description of the first name insured's business, -a schedule of coverage parts and the premiums charged for each, -and the total policy premium.

Fire Legal Liability (Damage to Premises Rented to You)-

coverage of a tenants liability for damage by fire to the rented premises the tenant occupies. extends coverage for fire damage to that portion of a leased premise in the care, custody, and control of the insured. Applies to damage by fire to premises rented to the insured and to damage regardless of cause to premises (including contents) occupied by the insured for 7 days or less. FOR EX. a client leases a new office space, the landlord inserts a clause in the lease stating that the insured is responsible if the portion of the premises leased is damaged by fire -Your client has a CGL, but it contains exclusions relating to PD to property in the lessee's (person who holds the lease of a property; tenant) care, custody or control. However, the coverage of Fire Legal Liability or Damage to Premises Rented to You on the CGL, pays for damage under PD liability In other words, the care custody and control exclusion has been deleted only as it relates to fire. Damage caused to the leased premises, other than fire, is still excluded

Products Liability

coverages for businesses that manufacture or sell something prodcut itself is not covered, only BI and PD caused by product Some products, such as chemicals, ammunition, explosives, and medical supplies, are so inherently hazardous that the insurance underwriter may elect NOT to offer products liability coverage on them The more products sold, the higher the premium Products Liability on a CGL may be excluded with the mutual consent of parties. The cost of a recall that's related to faulty products is NOT covered, nor is the loss of income the manufacturer may suffer while a product is off the shelf due to it being recalled.

Contractual Liability

covers insured conract defined in policy for contractual liability. insured contracts can be remebered by L.E.A.S.E L= lease contracts for equipment and premises E= Easement or a license agreement A=Agreement to Indemnify (Hold harmless cluase) S= Sidetrack Agreement, often known as railroad siding E=elevator/escalator coverage also covers businesses that act as general contractors since general contractors assumed to be responsible for acts of any sub contractors they may hire, they need coverage called "owners and Contractors Protective Liability"

Interline Endorsement

designed to eliminate duplicate language and minimize the number of endorsements required. Interline endorsements effectively coordinate the coverage provided in one coverage part of the policy to other coverage parts to prevent redundancy.

Mortgage Holder (Mortgagee)

individual or entity who owns the mortgage loan that was extended to a homeowner, and the party is entitled to enforce the terms of the mortgage. they have the right to collect payments to repay the loan and in the event of default, they are entitled to foreclose on the mortgage .The mortgage holder will have the final say on whether the mortgage can be assumed by a third party, or whether the mortgage will be renewed.

Commercial General Liability (CGL)

liability for your businesss covers BI and PD to others caused by negligent acts of the business cost of defense is in addition to limits does NOT cover personal liability generally has NO deductible can be written for almost any type of business Some businesses, such as auto dealers and repair shops, have a special type of Liability coverage known as Garage Liability

Commercial Liability Limtis

most CGL policies writtnen with both an occurence limit and an aggregate limit occurence limit appies to all damgages resulting from same occurnece declarations page will list separate aggregate limts for: -Prodcuts and completed operations losses, -and a general aggreagte for all other types of losses claims paid on an occurence basis reduce total aggregate amount of insurance avalable to pay for future claims

Claims-Made Form

on this form, the claim MUST be reported while the policy is in force or within 60 days after the expiration date. While the insurer is no longer responsible for claims that are reported after this tie, they are now responsible for anything that may have occurred in the past if the claim is reported during the current policy term. Only provides coverage for claims only when BOTH the alleged incident AND the resulting claim happen during the period To solve the dilemma, Claims made policies contain a retroactive date, which goes back to a date in the past In order for claims made form to respond, the claim had to occur AFTER the retroactive date and be reported during the policy period The retroactive date is negotiated between the insurer and the insurer at each policy renewal The farther back the retroactive date goes, the more exposure to past incidents the insurer has and therefore, the larger the premium will be. Claims made to the insurance company after the coverage period ends will NOT be covered, even if the alleged incident occurred while the policy was in force. Premium generally increases for about 5 years until policy is 'mature' Requires a "tail" to provide coverage if a claim is reported AFTER expiration date

Completed Operations Liability

part of the CGL insuring agreement but is designed for businesses that build or repair things. Covers the builder or repair contractor AFTER the work is done. Already know that CGL covers premises and operations liability in case someone is injured on the premises of a business or because of its operations.

CGL Policy: Coverage A (BI and PD)

provides BI and PD coverage for the following: -Premises and Operations Liability -Prodcuts and Completed Operations Liability -Contractual Liability Premium is based mainly on the size of the premises and how many square feet of space is open to the public Coverage also applies to the parking lot and sidewalks adjacent (next to) to the store.

Premises & Operations Liability

provides BI and PD coverage in the event someone other than contractor or his employee is injured or his PD due to contractors neglience premium pased on payroll. more employees, more exposure to operations liability Designed for businesses that could be sued based on what activities they perform (e.g. a contractor that does work at many different locations) Injury or damage done by mobile equipment is also covered as long as the mobile equipment is used OFF public roads For ex. provides coverage while in the process of building a house. -For someone building houses, coverage is also needed to protect the insured later (e.g in the event the roof collapses and injures the occupants).

condo commercial unit-owners coverage form

provides coverage for business personal property of the insured It does NOT cover the building, and it's only used for commercial condos, such as various types of businesses or retail shops. this form is ALWAYS used on an excess basis over the condo association coverage form when the dealing with the same insured property -meaning, this form will NOT pay out unless the condo association policy limit is first exhausted. there is no Mortgage Holder Additional Conditions.

CGL Policy Conditions

right of the insurer to conduct a premium audit right of the insured to receive advance notice if insurer elects to non-renew or cancel coverage CGL policy territory usually means the US, including -its territories and possessions, -Puerto Rico -Canada, -and other parts of the world, IF the injury or damages arise from a good or product made or sold in the described territory and the lawsuit for damages are brought to the US

Two or More Coverage Parts

specified in the common Declarations page. Although the common declarations provide information regarding the entire CPP, each coverage part must also have a separate Declarations page.

Value Reporting Endorsement

when business has fluctuating inventory values, most insures add a specialized valuation endorsement to property policy in order to avoid over-insruace, under-insruance, and inconvenice of continually endorsing policies to reflect changing insurance values allows level of coverage to be adjusted as values change by reuquring the insured to file daily, weekly, monthly or quartlery reporting forms