Commercial General Liability Insurance

Extended Reporting Periods (ERPs)

Provide coverage for claims made after the policy's expiration date. 60 days after expired with a claim. If no claim but insured reports a possible one then there is coverage for 5 years.

Personal and Advertising Injury

Includes such things as slander, libel, copyright infringement, invasion of privacy, false arrest, wrongful entry onto another's premises, and malicious prosecution.

When We Do Not Renew

States that if the insurer decides to not renew the CGL policy, it must mail or deliver written notice of nonrenewal to the first named insured at least 30 days before the expiration date of the policy.

Occurence

Which is defined in the CGL as an accident, including continuous or repeated exposure to the same general harmful conditions.

Coverage Gap

A period of time during which the insured is without coverage.

Commercial General Liability (CGL) Insurance

Covers business liability exposures. Covers premises and operations exposure, products-completed operations exposure, and indirect/contingent liability exposure.

Leased Worker

Means a person leased to the named insured by a labor leasing firm under an agreement between the insured and labor leasing firm to perform duties related to the conduct of the insured's business.

Products-Completed Operations Hazard

Includes all BI and PD occurring away from the premises owned or rented by the insured, and arising out of the insured's product or work, other than products that are still in the insured's physical possession and work that has not yet been completed or abandoned.

Employee

Includes leased workers, but not temporary workers.

Temporary Worker

Is a person who is furnished to the insured to substitute for a permanent employee on leave, or to meet seasonal or short-term workload conditions.

Voluntary Worker

Is a person who is not an employee, who donates time, and who is not paid by the insured or anyone else for work performed. A volunteer worker acts at the direction of the insured to perform duties determined by the insured.

Business Liability

Is liability that arises out of the conduct of a business. A business has a number of liability exposures, one of the most important of which is its premises and operations exposure: liability arising out of the business location or the activities of the business.

Claims Made Form

Is triggered when a claim is first made against the insured during the policy period, even if the actual injury or damage occurred at another time. This means that if Joe Street from our earlier example files a claim against Niftycare, it will be covered under the policy in effect when the claim is filed, rather than the policy in effect when the injury occurred. Under the claims-made form, claims filed during the policy period are covered, even when the occurrence took place prior to the effective date of the policy.

Coverage B: Personal and Advertising Injury

It covers liability arising out of offenses such as libel or slander. Like Coverage A, personal and advertising injury liability coverage may be offered on either an occurrence or claims-made basis.

Coverage C: Medical Payments

It pays for medical expenses incurred for bodily injury caused by an accident on premises the insured owns or rents, on ways next to premises the insured owns or rents, or arising from the insured's operations.

Supplemental Extended Reporting Period Endorsement

It 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 five-year ERP, whichever applies. The insured must request this endorsement and pay an additional premium.

Retroactive Date

It provides some measure of protection against previous losses that may have occurred before the claims-made form was written. The retroactive date is listed in the CGL declarations. The insured has three options for the retroactive date: Use the same date as the policy effective date; Use an earlier date than the policy effective date; Use no retroactive date.

Insured's Product

Means any goods or products, other than real property, that are manufactured, sold, handled, distributed, or disposed of by the insured, others trading under the insured's name, or a person or organization whose business or assets the insured has acquired. It also includes: containers, materials, parts, or equipment furnished in connection with the product; warranties or representations made at any time with respect to the fitness, quality, durability, or performance of any part of the product; and the providing of or failure to provide warnings or instructions.

Mobile Equipment

Means any of the following types of land vehicles, including any attached machinery or equipment: bulldozers, farm machinery.

Impaired Property

Means tangible property other than the insured's product or the insured's work that cannot be used or is less useful because: it incorporates the insured's product or work that is known or thought to be defective, deficient, inadequate, or dangerous; or the insured failed to fulfill the terms of a contract or agreement.

Insured's Work

Means work or operations performed by or on behalf of the insured, and materials, parts or equipment furnished in connection with such work or operations. It also includes warranties or representations made at any time with respect to the fitness, quality, durability, or performance of the insured's work and the providing of or failure to provide warnings or instructions.

Coverage A: Bodily Injury and Property Damage Liability

Pays those sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which the insurance applies.