Unit 8

What are the limits of coverage for fire legal liability in a CGL Policy?

A $100,000 fire damage limit applies with respect to damages for each fire to premises rented to the insured; higher limits are available.

A Cyber Liability Policy is also known as what?

A Cyber Liability policy is also known as an Information Security Protection Policy.

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 the "general aggregate" limit in a CGL Policy?

A limit, which applies to "all claims" during each annual policy period for all policy coverage except for BI and PD claims arising from the insured products and completed operations. The lowest limit is $50,000. A separate products-completed operations aggregate limit for those hazards.

What is professional liability insurance?

A policy which covers liability arising from rendering of or failure to render professional services for physicians, surgeons and dentists; hospitals and lawyers. By adding endorsements, the policy may apply to blood banks, medical and x-ray laboratories, nurses, optometrists and veterinarians

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.

Describe the umbrella form.

An umbrella form operates much like a stand-alone policy, except it will also provide coverage not included in the underlying policies. The umbrella form has its own terms, conditions, provisions, coverages, and exclusions. The umbrella form is subject to a deductible known as a self-insured retention (SIR); the SIR only applies to claims covered by the umbrella policy but not covered by the underlying policies.

What is coverage B of the CGL Policy?

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

Which forms do the physicians, surgeons and dentists (PS&D) professional liability insurance have?

Individual professional liability and partnership, association or corporation professional liability.

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 are the limits of insurance in a CGL Policy?

Limits apply to each occurrence for BI, PD and medical payments. (1) The lowest limit available is $25,000. Higher limits such as $100,000; $300,000; $500,000 or $1,000,000 are commonly written. A limit applies to all damages sustained by one person for personal and advertising injury, which is usually in the same amount as under BI and PD. For medical payments a basic limit of $5,000 applies to each person.

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

Explain personal injury coverage in a CGL Policy?

Personal injury liability protects the insured against claims for false arrest, detention or imprisonment, malicious prosecution, wrongful entry or eviction, libel, slander, only against violation of rights of private occupancy.

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.

Describe the liquor liability coverage form.

The CGL policy excludes coverage for liability for having caused or contributed to a person's intoxication, or furnishing liquor to minors or furnishing liquor in violation of statute for those who are in the business of manufacturing, distributing, selling, servicing or furnishing alcoholic beverages. This form provides coverage for those in the business of selling etc. alcoholic beverages. Coverage is available on either an occurrence or a claims-made form.

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.

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.

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.

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

Direct; indirect or contingent; and contractual

A CGL contract must contain a declarations page, the common policy conditions, and a nuclear energy endorsement. What other form is necessary to complete the contract?

The contract must include coverage form- either an occurrence or claims-made form.

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.

What is the separation of insureds condition of the CGL policy?

The separation of insureds condition states that coverage applies separately to each insured, as if that interest were the only insured. One insured cannot make a claim against another insured.

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

Umbrella

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."

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.

Describe bodily injury as used in the CGL policy.

sickness, disease, death

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.

What coverage is provided by an EPL policy?

The EPL policy provides employers with claims-made coverage for liability arising out of claims or injury to an employee because of an employment-related offense

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.

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.

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.