General Liability *Unit 7* Quiz

What does Coverage A of the CGL form state?

"We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily_ injury_" (BI) or "property_ damage_" (PD) to which this insurance applies."

Who is insured under the CGL policy?

"Who is insured" is usually determined by the insured's form of legal entity (corporation, partnership, or sole proprietor). If the named insured is an individual, the spouse is also an insured while conducting business. Legal successors are also insureds in the event that the sole proprietor dies. If the named insured is a partnership or joint venture, the partners and their spouses are insureds while conducting business. If the named insured is a limited liability company, the members and managers are insured while conducting business. If the named insured is a corporation, executive officers, directors and stockholders are insured in their status as such.

An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: The Company paid a $60,000 PD claim for an occurrence during an ongoing construction job. After this claim, how much coverage is available to the insured for the next claim for BI or PD?

$100,000, the each occurrence limits; $240,000 general aggregate

An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: Three persons were injured in an accident. There are no liability claims, but there are medical expenses of $3,000 for one person, $7,000 for the second person and, $12,000 for the third person. How much is payable?

$13,000 payable - maximum $5,000 per person.

An insured had a CGL policy with limits of $100,000 each occurrence BI and PD, $100,000 Personal and Advertising Injury, $300,000 General Aggregate, $300,000 Products Aggregate, $5,000 Medical Payments and $50,000 Fire Damage Liability. Assume covered occurrences and claims were all during the current policy period: The Company paid a $30,000 liability claim for fire damage to the building rented by the insured. What limit is available if the same type of loss should occur again at the same building?

$50,000 - limit applies per fire

Which of the following property or injury are not covered in the CGL policy?

*A. All of the answers are correct B. Damage to the insured's product arising out of the product itself after being sold C. Damage to the insured's own work after completed D. Personal property in the insured's care, custody or control

Identify the three different legal theories of recovery that CGL insurance may protect an insured against.

*A. All of the answers are correct B. Direct C. Contractual D. Indirect or contingent

Which of the following describes Coverage C Medical Payments?

*A. All of the answers are correct B. Payments are made for medical, dental, hospital and funeral services incurred within one year from the date of accident C. The claimant must suffer bodily injury by accident (1) on or next to the insured's premises (2) because of the insured's operation. D. Payments are made on a voluntary basis without admitting liability

What is the coverage of the "supplemental extended reporting period "in a claims-made policy?

*A. All of the answers are correct B. Unlike the basic extended reporting period, the supplemental extended reporting period, requires an endorsement and additional premium payment C. The effect of this option is to extend the basic period to unlimited duration D. The aggregate limits of the policy are reinstated for the supplemental reporting period

Which of the following apply to the other insurance condition of the CGL policy?

*A. All of the answers are correct * Correct B. Both CGL forms are excess over property insured that applies to the insured's completed work or to premises rented to the insured C. Except as otherwise provided, the policy is primary insurance. D. In the claims-made CGL form, the policy is excess over any other policy that is not claims-made

Which of the following defines sexual harassment as covered by the EPL?

*A. All of the answers are correct * Correct B. Damage to the insured's own work after completed C. Personal property in the insured's care, custody or control D. Damage to the insured's product arising out of the product itself after being sold

The CGL policy is written with several basic limits, which state the maximum the insurer will pay in the event of a loss. What are these limits?

*A. All of the answers are correct Correct B. A separate products-completed operations aggregate limit with a basic limit of $200,000 states the maximum the insurer will pay during the policy period for claims involving products or completed operations C. A basic limit of $200,000 applies to the general aggregate limit D. A basic limit of $100,000 applies to each occurrence for bodily injury and property damage

What coverage is provided by coverage a of the CGL form?

*A. All of the answers are correct Correct B. A separate products-completed operations aggregate limit with a basic limit of $200,000 states the maximum the insurer will pay during the policy period for claims involving products or completed operations C. A basic limit of $200,000 applies to the general aggregate limit D. A basic limit of $100,000 applies to each occurrence for bodily injury and property damage

Who is an insured under the CGL policy?

*A. All of the answers are correct Correct B. If the named insured is a partnership or joint venture, the partners and their spouses are insureds while conducting business C. If the named insured is a corporation, executive officers, directors and stockholders are insured in their status as such. D. If the named insured is an individual, the spouse is also an insured while conducting business

Explain Coverage C - Medical Payments Coverage in a CGL Policy.

*A. All of the answers are correct* Correct B. Payment is for medical, dental, hospital and funeral services incurred within one year from the date of the accident to persons who suffer BI by accident (1) on or next to the insured's owned or rented premises, or (2) because of the insured's operations C. Limits apply to each occurrence for BI, PD and Medical Payments. D. The basic limit is $5,000

Which of the following describe when the "supplemental reporting period" in a claims-made policy may be used?

*A. All of the answers are correct* Correct B. The insured pays for the supplemental reporting coverage C. The insured makes a request in writing within 60 days after policy expiration for the supplemental reporting coverage D. After the basic extended reporting period takes effect

Which of the following would be covered by the products and completed operations exposure of the CGL?

*A. Both of the answers are correct Correct B. The claimant becomes ill after purchasing eating bad seafood purchased through the drive through at the fast food restaurant C. None of the answers are correct Incorrect D. A container of gasoline exploded after the claimant placed the container in the trunk of his car

Assume, for each of the following: an insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003, both stating retroactive date 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Insured sold product which caused injury in 2000, it injured claimant in 2001, claimant first made claim against insured in 2002?"

2001 occurrence policy applies (occurrence form applies to BI/PD which occurs during the policy term). The 2002 claims-made policy does not apply because the occurrence happened before retroactive date.

The insured under a Commercial General Liability policy rents an additional warehouse. He would be covered without notice to the agent or the insurer for which of the following?

90 days

What is general liability Insurance?

A field of insurance, which embraces business liability hazards other than those dealt with by more specialized forms of coverage such as automobile, aviation, marine, professional and worker's compensation etc.

What is an example of a business's liability for the existence of "direct" hazards?

A person being injured by an allegedly unsafe condition in premises owned or occupied by the insured.

What is an example of a business's liability for the existence of "indirect" hazards?

A person being injured by an allegedly unsafe condition in premises owned or occupied by the insured.

The Dane Company finds a defect in one of its products. 100 units must be destroyed, valued at $700 each. The recall of units on the market will cost an additional amount of $5,000 to replace. How much will the Commercial General Liability policy will pay?

A. $70,000 B. $75,000 *C. Nothing Correct D. $5,000

Which of the following are included in the definition of a suit as covered by the EPL?

A. A civil proceeding alleging damages *B. All of the answers are correct * Correct C. Arbitration, alternative dispute resolutions D. Administrative hearings conducted by a government agency.

Which of the following would be covered by the products and completed operations exposure of the CGL?

A. A claimant spills hot coffee on himself or herself after driving through the drive through at the fast food restaurant *B. Both of the answers are correct Correct C. None of the answers are correct D. A weed eater purchased by the claimant and being used to trim weeds at their home damages the claimant's pants

Which of the following would be covered by the products and completed operations exposure of the CGL?

A. A weed eater being demonstrated in the insured's warehouse damages the claimant's pants B. A waitress spills hot coffee on the claimant in a restaurant C. Both of the answers are correct *D. None of the answers are correct

Which of the following describes the Individual Professional coverage of the Physicians, Surgeons and Dentists (PS&D) form?

A. Applies to each person named in the declarations page as an insured as well as the insured's employees, or anyone else under the personal direction, control or supervision of the insured, including services by the insured on any professional board B. Claims are paid for legal liability resulting from any 'medical incident' defined as the furnishing a medical or dental services. *C. All of the answers are correct D. Coverage excludes any liability incurred as a member, partner, officer, director or stockholder of any professional partnership, association or corporation

Which of the following are covered as part of Coverage A Bodily Injury and Property Damage of a Commercial General Liability Policy?

A. Contingent Liability caused by a subcontractor of the insured B. Liability assumed under a lease contract *C. All of the answers are correct Correct D. Liability due to one's products injuring others

Which of the following describe when the "basic extended reporting period" in a claims-made policy may be used?

A. If the policy is cancelled or not renewed B. If the policy is renewed on an occurrence policy *C. All of the answers are correct D. If the policy is renewed with a retroactive date later that the date stated in the declarations

Describe the effect of the "Known Loss Rule" on the CGL policy.

A. None of the answers are correct *B. Both of the answers are correct* Correct C. Insuring agreements now impose coverage restrictions with respect to known injury or damage D. If the insured knew that BI or PD had occurred before the CGL effective date, then any known or unknown continuation of that BI or PD during or after the CGL policy period would be considered a know loss and excluded

Define bodily injury (BI).

A. Physical harm B. Including sickness or disease of death resulting from physical harm *C. Both of the answers are correct

Which of the following describes the EPL form?

A. The EPL policy has several exclusions B. The EPL policy provides employers with claims-made coverage for liability arising out of claims for injury to an employee because of an employment-related offense C. Unlike policies with a deductible, the EPL policy has a co-payment provision. Under this provision, the insured shares payment for claims subject to a maximum amount. *D. All of the answers are correct

Which of the following describe the "retroactive date" in a claims-made policy?

A. The claim-made form also requires the claim to be received and recorded during the policy period B. The claims-made form applies only to a BI or PD, which occurs on or after the "retroactive date". C. Stated in the declarations and will normally be the same date of the effective date of the issuing company's first claims-made policy for the insured. *D. All of the answers are correct

What is the coverage territory of the CGL policy?

A. The entire world if the product was made or sold by the insured in the defined territory and if the suit or claim is filed in the defined territory B. None of the answers are correct *C. Both of the answers are correct Correct D. The U.S. and its territories or possessions, Puerto Rico and Canada including international waters and airspace between these places

Which of the following best describes the Basic Extended Reporting period provision?

A. The provision allows claims to be made within sixty days after policy expiration B. The provision allows claims to be made within five years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration C. The basic extended reporting period provision is automatic, cannot be canceled, and is free of charge *D. All of the answers are correct

The claims-made form provides coverage for any claim where the claim is made after a 'retroactive date':

A. The retroactive date is a separate date stated on the claims-made declarations of the policy B. If the policy has no retroactive date, the insurer would be providing coverage for any claim made during the policy period regardless of when the claim occurred *C. All of the answers are correct Correct D. Normally the retroactive date is the same date at the effective date of the first claims-made policy issued for the insured

Which of the following best describes the supplemental extended reporting period provision?

A. This option extends the basic extended reporting period provision to unlimited duration B. The supplemental provides a limit equal to the expiring policies general aggregate and products-completed operations aggregate *C. All of the answers are correct * Correct D. This coverage must be requested by the insured in writing within sixty days after policy expiration

Which of the following is included in the definition of injury in the EPL form?

A. Work related sexual harassment; other work-related verbal, physical, mental or emotional abuse because of race, color, national origin, gender, marital status, age, sexual orientation or preference, physical or mental condition etc. *B. All of the answers are correct C. Refusal to employ, termination, demotion, or failure to promote, negative evaluation, reassignment, discipline an employee D. Defamation or humiliation based on discrimination; coercing the person to commit an unlawful act or omission within the scope of their employment

Explain advertising injury liability coverage in a CGL Policy?

Advertising injury liability protects the insured against claims for misappropriation of advertising ideas or style of doing business or infringement of copyright, title or slogan.

What is the cancellation clause in Florida for the general liability policy?

After 90 days, 45 days written notice of cancellation or nonrenewal is required

Which of the following apply to the aggregate limits in a CGL policy?

If an insured purchases "supplemental extended reporting period" coverage under a claims-made policy, the original policy aggregate limits are reinstated for the extended period.

What is coverage B of the CGL Policy?

In addition to BI and PD the policy covers "personal injury" and "advertising injury."

How do the two coverages apply in the P, S&D insurance policy?

Individual coverage applies to each person named in the Declarations. Partnership coverage applies to the organization, as well as a member, partner, or employee or others acting under the direction, control or supervision of the insured.

What is the contractual liability exclusion in a CGL Policy?

Liability assumed under contract is excluded subject to two exceptions: (1) the exclusion does not apply if the insured would have been legally liable regardless of the contractual assumption: and (2) leases, sidetrack agreements (railroads), easement agreements, and certain other agreements entered into prior to the bodily injury or property damage are not subject to the exclusion.

Describe the coverage for recall of the insured's product?

Liability or expense related to recall of the insured's products or work is excluded.

What types of mobile equipment are covered by the CGL Policy?

Mobile equipment is defined as any of the following types of land vehicles and attached equipment: bulldozers, farm machinery, forklifts and other vehicles designed primarily for off-road use, vehicles maintained solely for use on or next to the premises the injured owns or rents, vehicles on crawler treads, vehicles maintained to provide mobility to mounted power cranes, shovels, loaders, diggers, or drills or road construction or reconstruction equipment, and vehicles used to provide mobility for air compressors, pumps, generators and cherry pickers or similar devices. There is no coverage for transportation of mobile equipment by automobile or use of mobile equipment in association with racing activities. Mobile equipment being transported by automobile is covered for liability by the commercial automobile policy. The damage to mobile equipment itself is covered by an inland marine policy, which will be discussed in a future unit. Mobile equipment not listed above is not covered under the CGL policy.

How are new businesses covered under the CGL?

New businesses, which are not a partnership, joint venture or limited liability company, which are formed during the policy term, are automatically covered for 90 days. Partnerships, joint ventures or limited liability companies not named on the policy are not covered.

What is the difference between the "occurrence" and the "claims-made" versions of the CGL Policy?

Occurrence applies to BI or PD claims which occur during the policy period, regardless of any later time at which a claim is made. Claims-made applies to BI or PD which occur on or after the "retroactive date" and for which the claim is received or recorded by an insured or the company during the policy period.

What are the exceptions to the exclusion for liability for aircraft, automobiles or watercraft?

Parking of others autos on or next to the insured's premises

The insured purchased a Commercial General Liability policy. The insured, suspecting illegal activities by a tenant, checked the tenant's apartment while the tenant was absent. The tenant sued for damages claiming wrongful entry. Which coverage under the Commercial General Liability policy applies?

Personal and Advertising Injury

Define property damage (PD).

Physical injury to tangible property

Describe property damage as used in the CGL policy.

Property damage (PD) means physical injury to tangible property including loss of use of that property. Property damage also includes loss of use of tangible property that has not been physically damaged. Property damage does not include loss to intangible property or loss of use of intangible property such as copyrights or patents.

What are the exclusions under coverage C - medical payments?

Several exclusions applied to Coverage C: injuries to any insured: injuries to tenant; injuries to an employee of the insured; injuries to anyone entitled to worker's compensation or similar law benefits; injuries to anyone participating in athletic event; or anyone injured away from the insured's premises or by the insured's work after completion or by the insured's product. Additionally, all of the exclusions for bodily injury and property damage liability apply to Coverage C.

Is the "coverage territory" limited to the U.S. and its territories for products claims under Coverage A of a CGL Policy?

Territory is expanded to include the entire world as to BI and PD caused by products made or sold by the insured in the defined territory, and activities of the insured while away from the defined territory for a short time on business. If a suit results from such an injury, it must be filed within the more limited territory i.e., "The U.S. and its territories etc., etc."

Assume, for each of the following: an insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003; the 2002 claims-made policy contained no retroactive date; the 2003 policy had a retroactive date of 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Insured sold product which caused injury in 2000, it injured claimant in 2001, claimant first made claim against insured in 2002?"

The 2001 occurrence policy would still apply and the 2002 claims-made policy would also apply (with no retroactive date, it applies to claims for all prior occurrences if first made during its term); the occurrence policy would be primary; the claims-made coverage would be excess.

Assume, for each of the following, the insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003, both stating retroactive date 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Claimant injured in 2002. Claim was first made against insured on 7-1-03?"

The 2002 claims-made policy applies (occurrence after retroactive date, claim fist made during its term).

Assume, for each of the following: an insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 and 2003, both stating retroactive date 1-1-02. The insured retired from business and did not renew or replace the 2003 policy. If there is a BI or PD from a covered occurrence, which policy or policies (if any) apply for; "Claimant injured in 2002. Claim was first made against insured on 3-1-03?"

The 2003 claims-made policy applies (occurrence after retroactive date, claim fist made during its term). The 2002 claims-made policy does not apply because it has expired.

Describe the exclusion for aircraft, automobiles, and watercraft?

The CGL policy excludes liability for aircraft, automobiles or watercraft subject to a few exceptions: (1) watercraft ashore on the insured's premises or if less than 26 feet long and not owned by the insured and not being used to carry persons or property for a charge; (2) parking of an automobile not owned by, or rented or loaned to the insured next to the insured premises; (3) liability for aircraft and watercraft assumed under a contract and not excluded by the contractual exclusion.

What is the coverage territory of the CGL policy?

The United States, its territories or possessions, Puerto Rico and Canada including international waters and airspace between these places

What is the basic extended reporting period provision?

The basic extended reporting period provision allows claims to be made within sixty days after policy expiration or within five years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration under the existing claims made policy as if the claim had been made on the last day of the policy period. The basic extended reporting period provision is automatic, cannot be canceled, and is free of charge. The basic extended reporting period probation does not increase or reinstate policy limits.

What is an example of a business's liability for the existence of "indirect" hazards?

The business being held liable for actions of an independent contractor to whom the insured has subcontracted a part of the general contract work.

What is an example of a business's liability being assumed under a contract?

The business being held liable for liability ordinarily belonging to another, but the business agreed by contract to indemnify or hold harmless one whose direct actions produced the claim.

What is meant by the "retroactive date" in a CGL Policy?

The claims-made form provides coverage for any claim where the claim is made after a "retroactive date" (a separate date stated on the claims-made policy) and the expiration date of the policy.

An appliance store sells a refrigerator to Mrs. Smith. The refrigerator is installed in Mrs. Smith's kitchen and after the installation had been completed, the refrigerator blows up catching fire and damaging the kitchen and injuring Mrs. Smith. The appliance store's Commercial General Liability policy covers?

Bodily Injury to Mrs. Smith and damage to the, kitchen but not the refrigerator

Describe bodily injury as used in the CGL policy.

Bodily injury (BI) means physical harm including sickness or disease or death resulting therefrom. Bodily injury does not include non-physical injuries such as damage to reputation.

What is the coverage of the "basic extended reporting period" in a claims-made policy?

Claims received within 60 days after policy expiration or within 5 years after policy expiration, if the occurrence was reported not later than 60 days after policy expiration are covered by the claims-made policy Correct

In what way would liability be "indirect" to an insured in a general liability insurance policy?

Contingent or indirect liability examples would be being held liable for actions of an independent contractor to whom the insured has subcontracted a part of general contract work and agreed to "hold harmless" the subcontractor whose direct actions produced the claim.

What are coverage B exclusions?

Coverage B exclusions included: liability from oral or written publications made with knowledge of falsity or occurring before the policy period; willful violation of law with knowledge or consent of the insured; liability assumed under contract; breach of contract; failure of products or services to meet advertising standards; wrong price descriptions in advertising; any offense committed by an insured whose business is advertising, broadcasting, publishing or telecasting; and pollution.

Which of the following apply to the separation of insured condition of the CGL policy?

Coverage applies separately to each insured as if that interest were the only insured

The insured, a contractor, built a condominium building. Six months after completion, the roof of the lobby fell in due to faulty plumbing. Pipes in the wall were not connected properly, causing the loss. The Completed Operations coverage will pay?

Coverage for damage caused by defective construction, but no coverage for repair or replacement of pipes

A product purchased in the U.S. subsequently injured a claimant in Europe. Which of the following best explains the merchant's coverage under his Product's Liability coverage?9

Covered if any suits are brought in the U.S. or one of the covered territories

Describe the coverage for the insured's work or product?

Damage to the insured's own products arising out of the product itself are excluded. The CGL policy excludes damage to the insured's own work. Damage arising out of the insured's work even after completion is excluded. Work done by a subcontractor is covered.

dentify the three different legal theories of recovery that CGL insurance may protect an insured against?

Direct; indirect or contingent; and contractual

How are employees covered under the CGL policy?

Employees are considered insureds while acting within the scope of their employment. Coverage is excluded for employees who cause bodily injury or personal injury to the named insured, partners, members or another employee. Employees are not covered for acts or omissions in providing professional healthcare service. Employees are not covered for damage to property owned, occupied, rented to or loaned to an employee, partner or joint venture. Employees are insured, except for injury to fellow employees or damage to property owned by the named insured, while operating mobile equipment covered under the CGL policy.

Explain what is covered by coverage C -medical payments?

The final CGL coverage is a "voluntary" or non-legal coverage. Payment is for medical, dental, hospital and funeral services incurred within one year from the date of the accident to persons who suffer BI by accident (1) on or next to the insured's owned or rented premises, or (2) because of the insured's operations.

ABC Construction owns a forklift. While clearing land for future development, the self-propelled forklift hits and destroys a Florida Power and Light power line. Is the damage to the power line covered by ABC's CGL policy?

The forklift being defined equipment is covered under the CGL

Which forms are contained in a complete CGL policy?

The forms are: declarations; common policy conditions; one of the two coverage forms, occurrence, or claims-made; and a nuclear energy liability exclusion endorsement. Other endorsements may be attached to broaden or restrict coverage provided by these basic forms.

An insured with coverage under a Commercial General Liability policy buys a new crane and immediately drives the crane on the highway to a job site. While driving on the highway, the insured had an at-fault accident. Which of the following describes how the insurer will respond?

The insurer will cover the loss since mobile equipment is covered and the crane meets the definition of mobile equipment covered by the policy

Are there any coverage limitations to the BI and PD coverage in a CGL Policy?

The insuring agreement states that the BI or PD must be caused by an "occurrence" which takes place in the "coverage territory". (Coverage territory is the U.S. and its territories or possessions, Puerto Rico and Canada, including international waters and airspace between these places.

Assume, for each of the following, the insured had calendar year policies: occurrence policies in 2000 and 2001, claims-made policies in 2002 (no retroactive date) and 2003 (retroactive date 1-1-02). If there were a BI or PD occurrence in 2001 from a covered occurrence and the claim was made in 2002, which policy or policies (if any) apply if the 2002 claims-made policy contained no retroactive date?

The occurrence policy would still apply and the 2002 claims-made policy would also apply (with no retroactive date, it applies to claims for all prior occurrences if first made during its term)

What is the cancellation clause in the CGL?

The policy states the insurer must give thirty days written notice of cancellation except a 10-day notice is required for nonpayment of premium. Florida law supersede this provision requiring as with other policies that cancellation during the first 90 days the policy is in force provide a 20 day written notice, except for material misrepresentation or misstatement or failure to comply with underwriting standards. After the first 90 days, a 45-day written notice of cancellation or nonrenewal is required. A 10-day notice is required for nonpayment of the premium.

Which of the following forms provides the broadest coverage for higher limits of liability?

Umbrella

What types of equipment are included in the definition of mobile equipment in the CGL?

Vehicles maintained solely for use on or next to the premises the insured owns or rents.

Describe vicarious liability.

When one person is liable for another's actions, he or she has vicarious liability. Vicarious liability may arise from a contract or from several relationships such as employer/employee or principal/agent (agents or subcontractors) relationships.

Name the two coverage forms for the CGL policy?

the "occurrence" and the "claims-made" forms

What is meant by the term "coverage trigger" for BI and PD damage liability coverage in a CGL Policy?

It deals with how the policy will apply to occurrences and claims, depending upon their timing, which is the "coverage trigger" or difference between the CGL forms- the "occurrence" and "claims-made" versions.

Why do businesses require this special class of "business liability insurance"?

To protect their businesses from the liability arising from premises, general operations (ongoing and after completion) and products manufactured or sold.

An insured is a restaurant operator who carries a Commercial General Liability policy. The insured's premises include a parking area used for valet parking of customer's cars. An employee of the insured, while parking a customer's automobile, hit another automobile in the parking lot. In addition to damaging to the automobile, a customer was injured while standing beside the damaged automobile. Which of the following describes how the insurer will respond?

Will pay injuries to injured customer

What is meant by the term "work" as used in the CGL policy.

Work means any job or operations performed by the insured or on the insured's behalf including materials, parts for equipment furnished in connection with such work or operation. Work is completed at the earliest of (1) when all work called for in the contract is completed, (2) when all of the work at the site has been completed if work is done at more than one site, or (3) when that part of the work at the job site has been put to its intended use by any person or organization other than another contractor or subcontractor.

XYZ, Inc. holds their normal July 4th picnic for employees. XYZ furnishes wine and beer at the picnic. One of XYZ's employee`s trips and falls at the picnic. Is XYZ covered under their CGL Policy?

XYZ has no coverage under the CGL policy, which excludes employee injuries

Is an insured's (business) liability "direct" to the business in a general liability insurance policy?

Yes it could be, such as, a person being injured by an allegedly unsafe condition in premises owned or occupied by the insured.

What is the supplemental extended reporting period provision?

his option extends the basic extended reporting period provision to unlimited duration. The supplemental provides two separate aggregate limits (aggregate means within the policy period). The supplemental provides a limit equal to the expiring policy's general aggregate and products-completed operations aggregate. This coverage is provided by endorsement to the policy and does charge the insured an additional premium.