General Liability

Occurrence Form

A Commercial General Liability Coverage form with a coverage trigger that states that coverage applies only to bodily injury or property damage which occur during the policy period, regardless of when claim is made.

General Liability

A category of insurance which includes most a business's liability exposures. Exposures covered include premises and operations, products and completed operations, contractual liability, and contingent liability.

Retroactive Date

A date stated in the Declarations of a CGL Coverage form which is normally the same date as the date of the issuing company's first Claims-Made policy for the insured. No coverage is provided under the Claims-Made form for bodily injury or property damage that occurs prior to the retroactive date.

Owners and Contractors Protective Liability

A form of Liability insurance which protects an owner or general contractor against liability arising out of acts of independent contractors or subcontractors. May be issued to the independent contractor or subcontractor, or may be issued directly to the owner or general contractor.

Products and Completed Operations

A form of insurance which covers a company against liability arising out of its products or its completed operations. Included in CGL forms or may be purchased separately.

Pollution Liability Coverage

A form of liability insurance that can be added to the CGL section of the Commercial Package Policy to provide limited coverage for pollution.

Claims-Made Form

A liability form which is part of the Commercial General Liability part of the Commercial Package Policy. Covers bodily injury and property damage which occurs on or after the retroactive date, if any, and for which a claim is first made during the policy period.

Nuclear Energy Liability Exclusion Endorsement

A mandatory endorsement, which must be, included with the Commercial General Liability coverage part of the Commercial Package Policy. In general, it excludes all hazards related to nuclear energy.

Extended Reporting Period

A period of time provided by the Claims-Made Commercial General Liability coverage form during which coverage will be provided for claims made beyond the expiration date of the policy if the coverage part is (1) canceled or not renewed or (2) if the insurer renews or replaces the Coverage with insurance that has a retroactive date later than the date shown in the Declarations, or with an Occurrence form. The Basic Extended Reporting Period runs five years. The Supplemental Extended Reporting Period has unlimited duration but is available only by endorsement for an extra charge.

Contingent Liability

Liability which an insured or business incurs because of the actions of others (i.e., family or employees). Also called vicarious liability.

Vicarious Liability

Negligence which is not directly attributable to the person claimed against, but which is the negligence of another for whom the person claimed against is in some way responsible. See Contingent Liability.

Contractual Liability

Provides coverage against liability rising out of an insured's contractual obligations. Excluded in the Commercial General Liability Policy, subject to several exceptions.

Personal and Advertising Injury

Coverage provided under Liability policies which provides coverage against liability for libel, slander, violation of privacy, misappropriation of advertising ideas or infringement of copyright, title or slogan.

Consequential Damage

Damage which occurs as "consequence" of a direct loss, such as loss from spoilage resulting from lack of power, light, heat, etc. Not generally covered under property policies unless specified.

Coverage Trigger

The event which triggers coverage under a Commercial General Liability Coverage form. Under the Occurrence form, the coverage trigger is bodily injury or property damage which occurs during the policy period, regardless of any later time at which a claim is made. Under the Claims-Made form, the trigger is BI or PD which occurs on or after the retroactive date and for which claim is made during the policy period.

Liquor Liability Coverage

This form belongs to the Commercial General Liability coverage part of the Commercial Package Policy. It covers liquor liability which is excluded from the standard CGL forms for those who are in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages.