Commercial General Liability Insurance - Chapter 15

*(Commercial General Liability Insurance - Chapter 15)* Poolutants

Any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed.

*(Commercial General Liability Insurance - Chapter 15)* Definitions

Both versions of the CGL forms contain a definitions section that helps clarify the intent of various coverage's and conditions. This section is identical in both the occurrence and claims-made forms.

*(Commercial General Liability Insurance - Chapter 15)* Products-Completed Operations Exposure

Business exposures related to liability defects in its products or completed operations. EX's include: - A claim against Hooks Baker for injury resulting from the sale of spoiled cream puffs - A claim against Magic Carpets, Inc. for injury that results when a customer steps on a carpet tack left behind by Magic's workers.

*(Commercial General Liability Insurance - Chapter 15)* Extended Reporting Periods (ERPs)

Can help close potential coverage gaps and provide coverage for claims made after the policy's expiration date. The policy provides an extended reporting period if: - The claims-made form is canceled or not renewed - The insurer renews or replaces the form with insurance that has a retroactive date later than the date shown in the Declarations of the current form - The insurer renews or replaces the form with an occurrence form. [Once an extended reporting period is in effect, it cannot be cancelled.]

*(Commercial General Liability Insurance - Chapter 15)* Pollution Liability Coverage Form & Pollution Liability-Limited Coverage Form

Cover certain pollution losses excluded under the standard form. Each covers pollution incidents, which are emissions of pollutants into or on land, the atmosphere or water that cause environmental damage. The only difference is the pollution liability- limited form does not cover clean up costs, and the pollution liability form does. Both pollution forms are only written on a claims-made basis.

*(Commercial General Liability Insurance - Chapter 15)* Occurrence Form

Coverage is triggered by damage or injury that occurs during the policy period

*(Commercial General Liability Insurance - Chapter 15)* Claims-Made Form

Coverage 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 this form, claims filed during the policy period are covered, even when the occurrence took place prior to the effective date of the policy.

*(Commercial General Liability Insurance - Chapter 15)* Commercial General Liability (CGL) Insurance

Covers business liability exposure

*(Commercial General Liability Insurance - Chapter 15)* Liquor Liability Coverage Form

Covers insureds who are in the liquor business. It covers liability for contributing to a person's intoxication or for providing liquor in violation of the law for businesses engaged in the liquor business. The standard forms exclude this liability, which is sometimes called dram shop liability. Coverage can be purchased on either a claims-made or occurrence basis.

*(Commercial General Liability Insurance - Chapter 15)* Coverage B-personal and advertising injury liability

Covers liability arising out of offenses such as libel or slander. May be offered on either an occurrence or claims-made basis

*(Commercial General Liability Insurance - Chapter 15)* Owners and Contractors Protective Liability (OCP) Coverage Form

Covers the insureds liability for operations of independent contractors. It is purchased by someone other than the named insured to protect against liability arising out of work performed for the insured by an independent contractor. It is most frequently used to protect an owner for liability arising out of operations being performed by a general contractor. Coverage applies only to the specific location and contractor named in the declarations and is written on an occurrence basis.

*(Commercial General Liability Insurance - Chapter 15)* Contribution by Limits

Each company pays a proportion of the loss equal to the proportion its policy limit bear to the total amount of insurance available.

*(Commercial General Liability Insurance - Chapter 15)* (TRUE/FALSE) An event does not have to occur between the retroactive date and the policy expiration date to be covered under a claims-made CGL that has the Supplemental ERP Endorsement attached.

FALSE

*(Commercial General Liability Insurance - Chapter 15)* (TRUE/FALSE) The Supplemental Extended Reporting Period Endorsement extends the policy period of a claims-made form for an unlimited amount of time.

FALSE

*(Commercial General Liability Insurance - Chapter 15)* Named Insured

In the CGL, who is considered an insured under the policy depends on how the named insured is designated in the CGL Declarations: as an individual, partnership, or joint venture, limited liability company, trust or organization other than a partnership, joint venture, or limited liability company.

*(Commercial General Liability Insurance - Chapter 15)* Incidental (insured) contracts

Include leases, sidetrack agreements, easement agreements, contracts with municipalities required by ordinance, elevator maintenance agreements, and contracts relating to the insured's business under which the insured assumes another's liability. Liability under these is covered. As part of these, the insured may also assume liability for any defense costs incurred by or for a third party. These costs are considered covered damages if they are related to a loss that is insured by the policy. Since these costs are classified as covered damages, they will reduce the policy's limit of liability.

*(Commercial General Liability Insurance - Chapter 15)* Your Right to Claim and Occurrence Information Condition

Included in the claims-made form, but not the occurrence form. Provides that the insurer will give the first named insured certain information relating to the current CGL claims-made form and any previous claims-made forms the insurer has issued to the insured during the previous three years. The information includes: - a list or record of each occurrence not previously reported to any other insurer of which this insurer has been notified according to policy provisions; - a summary, by policy year, of payments made and amounts reserved under any applicable general aggregate limit and products-completed operations aggregate limit. If the insurer cancels or nonrenews the policy, it will provide this information no later than 30 DAYS prior to termination. In other circumstances, the insurer will provide the information only if it receives a written request from the first named insured within 60 DAYS after the end of the policy period. The information will be provided within 45 DAYS of the request.

*(Commercial General Liability Insurance - Chapter 15)* 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 insureds physical possession and work that has not yet been completed or abandoned. Until the insured actually transfers products to others or completes work, liability exposures do not fall within the products-completed operations hazard.

*(Commercial General Liability Insurance - Chapter 15)* Employee

Includes leased workers, but not temporary workers.

*(Commercial General Liability Insurance - Chapter 15)* 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.

*(Commercial General Liability Insurance - Chapter 15)* Premises and Operations Exposure

Liability arising out of the business location or the activities of the business. This includes liability for bodily injury, property damage, and Personal and Advertising Injury

*(Commercial General Liability Insurance - Chapter 15)* Business Liability

Liability that arises out of the conduct of a business. A business has a number of liability exposures, one of the most important is a businesses Premises and Operations Exposure

*(Commercial General Liability Insurance - Chapter 15)* 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.

*(Commercial General Liability Insurance - Chapter 15)* Mobile Equipment

Means any of the following types of land vehicles, including any attached machinery or equipment: - Bulldozers, farm machinery, forklifts, and other vehicles designed for use principally off public roads - Vehicles maintained for use solely on or next to premises the insured owns or rents - Vehicles that travel on crawler treads - Vehicles, self-propelled or not, maintained primarily to provide mobility to permanently mounted power cranes, shovels, loaders, diggers, or drills, or road construction or resurfacing equipment such as graders, scrapers or rollers - Vehicles that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment such as air compressors, pumps and generators, or cherry pickers and similar devices used to raise or lower workers - Any vehicle that does not fit any of the above descriptions and is maintained primarily for purposes other than the transportation of persons or cargo

*(Commercial General Liability Insurance - Chapter 15)* Loading or Unloading

Means handling of property: - after it is accepted for movement into or onto an aircraft, watercraft, or auto; - while it is in or on an aircraft, watercraft, or auto; or - while it is being moved from an aircraft, watercraft, or auto to the place where it is finally delivered. It DOES NOT include the movement of property by a mechanical device, other than a hand truck, that is not attached to the aircraft, watercraft, or auto.

*(Commercial General Liability Insurance - Chapter 15)* The insured, Francesca Pirelli, is a furniture retailer who is advertising a sale to rid herself of older inventory. Pirelli has a contract with HighStyle Furnishings that says she will not sell their line at lower than their suggested retail price. When she includes some HighStyle furniture in an ad at 40% off, HighStyle sues her for breach of contract. Would this claim be covered under Coverage B of the CGL?

No

*(Commercial General Liability Insurance - Chapter 15)* While visiting the Rainbow Spray Paint Factory on a field trip with his kindergarten class, George Leland was invited to try out the new Rainbow spray paint product. The container leaked red paint on George's leather jacket. Would this loss fall under the products-completed operations hazard?

No

*(Commercial General Liability Insurance - Chapter 15)* Basic Extended Reporting Period

Of either 60 days or five years is available automatically and free of charge under specific conditions. 1) 60-DAY BASIC ERP - When a claims-made policy is terminated, a 60 day basic ERP automatically becomes available. The insured does not have to apply for it, and no premium is charged. It provides automatic coverage for any valid claim made during the 60 days after the policy expires, as long as the incident occurred between the expiring policy's retroactive date and its expiration date. 2) FIVE-YEAR BASIC ERP - Suppose the insured is aware of an event that took place before the claims-made policy expired, but suspects that claims may first come in after the 60-day basic ERP. The insured has up to 60 days following policy expiration to report the occurrence or offence to the insurer. In this case, the five-year basic ERP automatically applies. Claims for damages arising from the reported occurrence can be brought any time during the five-year period.

*(Commercial General Liability Insurance - Chapter 15)* EX of a loss covered under Coverage B-personal and advertising injury

One of the insured's competitors sues the insured for slander.

*(Commercial General Liability Insurance - Chapter 15)* Pollution Liability Coverage Extension Endorsement

Overrides the Coverage A exclusion for BI and PD claims arising out of pollution losses. It DOES NOT however, provide coverage for clean-up costs associated with pollution losses.

*(Commercial General Liability Insurance - Chapter 15)* Coverage C-medical payments

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 insureds operations. To be covered, the expenses must be incurred and reported to the insurer within one year of the date of the accident. Medical payments are made without regard to fault, unlike other coverage's under the CGL forms.

*(Commercial General Liability Insurance - Chapter 15)* Supplemental Extended Reporting Period Endorsement

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.

*(Commercial General Liability Insurance - Chapter 15)* Products-Completed Operations Aggregate Limit

Represents the most that will be paid under Coverage A because of injury and damage arising out of the products-completed operations hazards

*(Commercial General Liability Insurance - Chapter 15)* Damage To Premises Rented to the Insured Limit

Represents the most that will be paid under Coverage A for liability for fire damage to premises rented to the insured or occupied by the named insured with the owners permission arising out of any one fire. This sublimit is also subject to the per occurrence limit and the general aggregate limit.

*(Commercial General Liability Insurance - Chapter 15)* Personal and Advertising Injury Limit

Represents the most that will be paid under Coverage B for the sum of all damages due to personal injury or advertising injury sustained by any one person or organization. This limit is also subject to the overall general aggregate limit.

*(Commercial General Liability Insurance - Chapter 15)* Nonrenewal - When We DO NOT Renew Condition

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 atleast 30 days before the expiration date of the policy.

*(Commercial General Liability Insurance - Chapter 15)* Other Insurance Condition

States that when the insureds CGL is primary and other primary insurance applies to the same loss, the loss will be divided between the policies by one or two methods: - Contribution by Equal Shares - Contribution by Limits

*(Commercial General Liability Insurance - Chapter 15)* (TRUE/FALSE) The Supplemental ERP takes effect at the end of either the 60-day or 5-year basic ERP, whichever applies.

TRUE

*(Commercial General Liability Insurance - Chapter 15)* (TRUE/FALSE) The insured must request the Supplemental ERP Endorsement and pay an additional premium for it.

TRUE

*(Commercial General Liability Insurance - Chapter 15)* Impaired Property

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 the be defective, deficient, inadequate, or dangerous; or - the insured failed to fulfill the terms of a contract or agreement The property is impaired only if it can be restored to use by repair, replacement, adjustment, or removal of the insured's product or work, or by the insured fulfilling the terms of the contract or agreement.

*(Commercial General Liability Insurance - Chapter 15)* EX of Contribution by Equal Shares

The insured has primary coverage with two companies. Company A's policy has limits of $25,000; Company B's limits are $50,000. Both policies permit contribution by equal shares. If a $60,000 covered loss occurred, Company A would pay up to its limits ($25,000) and Company B would pay $35,000.

*(Commercial General Liability Insurance - Chapter 15)* EX of a loss covered under Coverage C-medical payments

The insured incurs expenses administering first aid to a customer who faints and injures his head.

*(Commercial General Liability Insurance - Chapter 15)* Duties in the event of an Occurrence, Offense, Claim, or Suit

The insured must notify the insurer as soon as practicable of an occurrence or offense that may result in a claim, including how, when, and where it took place; the names and addresses of any injured persons and witnesses; and the nature and location of any injury or damage arising out of an occurrence. (Under the claims-made form, notice of an occurrence is NOT notice of a claim) The insured must also: - immediately send the insurer copies of any demands, notices, or other legal papers received in connection with a claim or suit; - authorize the insurer to obtain records - cooperate with the insurer in the investigation, settlement, or defense of a claim; - at the company's request, assist the insurer in the enforcement of any right against someone who may be liable to the insured; and - not voluntarily make a payment, assume any obligation, or incur any expense, other than expenses for first aid, without the insureds consent, except at the insureds own cost.

*(Commercial General Liability Insurance - Chapter 15)* General Aggregate Limit

The most that will be paid for the sum of coverage's 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 to each of the insureds locations or projects

*(Commercial General Liability Insurance - Chapter 15)* Per Occurrence Limit

The most that will be paid for the sum of damages under Coverage's A and C because of all bodily injury, property damage, and medical payments arising out of any one occurrence. This limit is also subject to either the general aggregate limit or the products-completed operations aggregate limit, whichever is applicable.

*(Commercial General Liability Insurance - Chapter 15)* Medical Expense Limit

The most that will be paid under Coverage C for all medical expenses because of bodily injury sustained by any one person. This sublimit is also subject to the per occurrence and general aggregate limits.

*(Commercial General Liability Insurance - Chapter 15)* Coverage Territiory

Usually means the described territory of the United States of America, including its territories and possessions, Puerto Rico, and Canada. It also means international waters or airspace if the injury or damage does not occur in the course of travel or transportation to or from any place not included in the described territory.

*(Commercial General Liability Insurance - Chapter 15)* Designation in Declarations: Organization other than partnership, joint venture, or limited liability company

Who are insureds: - Named Insured - Executive Officers and directors - Stockholders Restrictions: - Executive officers and directors are insureds only in connection with conducting the business - Stockholders are insureds only in connection with liability as stockholders

*(Commercial General Liability Insurance - Chapter 15)* Designation in Declarations: Limited liability company (a company structured like a corporation, but with additional tax and liability advantages for its members)

Who are insureds: - Named Insured - Managers - Members Restrictions: - Members, partners, and their spouses are insureds only in connection with conducting the business

*(Commercial General Liability Insurance - Chapter 15)* Designation in Declarations: Partnership or Joint Venture

Who are insureds: - Named Insured - Named Insured's members and their spouses - Named Insured's partners and their spouses Restrictions: - Only in connection with sole proprietorships

*(Commercial General Liability Insurance - Chapter 15)* Designation in Declarations: Individual

Who are insureds: - Named Insured - Named Insured's spouses Restrictions:

*(Commercial General Liability Insurance - Chapter 15)* Designation in Declarations: Trust

Who are insureds: - Named Insured - Trustees Restrictions: - Trustees are insureds only in connection with their duties as trustees

*(Commercial General Liability Insurance - Chapter 15)* Insured's Work

Work or operations performed by or on the 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 insureds work and the providing of or failure to provide warnings or instructions.

*(Commercial General Liability Insurance - Chapter 15)* Dooley Plumbing, the insured, has contracted with J&L Builders to do the plumbing work on a new office building. Because of completion deadlines for 3 other jobs Dooley is working on, Dooley subcontracts part of the J&L job to a local subcontractor. Does the subcontractor's work qualify as the insured's work?

Yes

*(Commercial General Liability Insurance - Chapter 15)* Power Oil Company, the insured, manufactures petroleum products. In addition to the products themselves, would the can in which motor oil was sold be considered the insured's product?

Yes

*(Commercial General Liability Insurance - Chapter 15)* For Coverage C to apply under the CGL, the insured ____________________ required to be at fault for the injury from which the medical expense arise.

is not

*(Commercial General Liability Insurance - Chapter 15)* 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. To be covered, the BI or PD must be caused by an occurrence, which is defined in the CGL as an accident, including continuous or repeated exposure to the same general harmful conditions.

*(Commercial General Liability Insurance - Chapter 15)* To avoid coverage gaps when replacing one claims-made CGL form with another claims-made CGL form, the retroactive date of the replacement policy should be _____________________ the retroactive date of the policy being replaced.

the same as

*(Commercial General Liability Insurance - Chapter 15)* EX's of the Premises and Operations Liability Exposure:

- A claim against Sandle Appliances for injuries a customer suffers while he slips and falls on a newly waxed floor inside the store. - Claim against Breckenridge Manufacturers for libelous statements made about a competitors products

*(Commercial General Liability Insurance - Chapter 15)* Suppose a claims-made form has an effective date of January 1, 2008, an expiration date of December 31, 2008, and a retroactive date of January 1, 2006. Which of the following would be covered?

- A claim filed October 1, 2008 for a covered loss that occurred June 1, 2006. - A claim filed June 15, 2008 for a covered loss that occurred May 15, 2007

*(Commercial General Liability Insurance - Chapter 15)* Advancing the retroactive date can also create a coverage gap. To avoid this situation, the rules by which claims-made CGL coverage is governed require that the insured give WRITTEN CONSENT to advancing the retroactive date. The retroactive date may be advanced only for one of the following reasons:

- A different insurance company is writing a new policy - A substantive change in the insured's operations has resulted in a greater exposure to loss. - The insured did not provide the insurer with information the insured knew or should have known that would have been material to the insurance company's decision to accept the risk, or the insured did not provide information requested by the insurance company. - The inured requests that the retroactive date be advanced

*(Commercial General Liability Insurance - Chapter 15)* Coverage A and B Supplementary Payments:

- All expenses incurred by the insurance company - Up to $250 for the cost of bail bonds - Cost of bonds to release attachments - Reasonable expenses incurred by the insured to assist in the investigation and defense of a claim, including up to $250 per day for loss of earnings - All court costs taxed against the insured in a suit (does not include attorney fees) - Prejudgement and postjudgement interest - Defense costs for an indemnitee These payments DO NOT reduce the limits of insurance.

*(Commercial General Liability Insurance - Chapter 15)* A Commercial General Liability Coverage Part must include the following:

- Common Policy Declarations - Common Policy Conditions - CGL Declarations - One or more CGL Coverage Forms - Any mandatory endorsements

*(Commercial General Liability Insurance - Chapter 15)* Types of coverage's provided under the Commercial General Liability Form:

- Coverage A-bodily injury and property damage liability - Coverage B-personal and advertising injury liability - Coverage C-medical payments

*(Commercial General Liability Insurance - Chapter 15)* Liability arising out of any of the following is excluded under Coverage B:

- Knowingly inflicting injury that violates the rights of another - Oral or written publication of material that the insured knows is false, but publishes anyway - Material that was published before the effective date of the policy - Criminal acts committed by or at the direction of the insured - Assumed under contract, except for liability the insured would have incurred even without assuming it under contract - Breach of contract - Failure of goods, products, or services to conform with advertised quality or performance - Incorrect price descriptions of goods, products, or services - Any offense committed by an insured who is involved in the business of advertising, publishing, broadcasting, telecasting, or designing or determining content of websites for others - Infringement of copyright, patent, trademark, trade secret, or other intellectual property rights (does not apply to infringement in the insured's advertisement of copyright, trade dress or slogan) - Any offense committed by an insured whose business is an Internet search, access, content, or service provider - An electronic chatroom or bulletin board the insured hosts or owns, or over which the insured exercises control - Unauthorized use of another's name or product in the insured's email address, domain name or metatag - Arising out of war or war-like acts - Arising out of violations of any law that prohibits or limits the distribution of material or information, including the federal Telephone Consumer Protection Act and CAN-SPAM Act

*(Commercial General Liability Insurance - Chapter 15)* Exclusions under Coverage A-bodily injury and property damage liability

- Liability arising out of the intentional injury; - Liability the insured assumes under a contract or agreement - Liability for those in the alcoholic beverage business, any liability imposed by law converning alcoholic beverages - Liability for work-related injuries covered under workers compensation or employers liability laws; and - Liability for most pollution losses that result in bodily injury, property damage, or clean-up costs; or - Liability resulting from the maintenance, operation, or use of aircraft, autos, or watercraft, except as specified in the policy

*(Commercial General Liability Insurance - Chapter 15)* There are two primary Commercial General Liability coverage forms:

- Occurrence Form - Claims-Made Form While the two forms contain basically the same coverage's, exclusions, and conditions, they differ in how coverage under the form is activated, or "triggered".

*(Commercial General Liability Insurance - Chapter 15)* Liability exposures primarily covered under the Commercial General Liability (CGL) Policy

- Premises and Operations Exposure - Products-Completed Operations Exposure - Indirect/Contingent Liability Exposure

*(Commercial General Liability Insurance - Chapter 15)* EX's of mobile equipment under the Commercial General Liability Coverage Form:

- Road Construction Grader - Bulldozer

*(Commercial General Liability Insurance - Chapter 15)* Certain self-propelled vehicles are not mobile equipment and considered autos:

- Self-propelled vehicles with permanently attached equipment designed primarily for snow removal, road maintenance (other than construction or resurfacing), or street cleaning - Cherry pickers and similar devices that are mounted on automobile or truck chassis and used to raise or lower workers - Self-propelled vehicles with attached air compressors, pumps, or generators Land vehicles that are subject to compulsory or financial responsibility laws or other motor vehicle insurance laws are considered autos, not mobile equipment.

*(Commercial General Liability Insurance - Chapter 15)* EX's of how coverage applies under the Occurrence Form:

- Suppose Joe Street is injured when a small piece of steel from the defective motor of a Niftycare lawnmower hits him in the eye. Provided the claim is otherwise covered, Niftycare's occurrence policy that was in effect at the time the injury occurred will apply to the loss, whether Joe makes his claim against Niftycare during the policy period or years later. There is coverage for any covered occurrence that happens during the policy period, even if the claim is made after the policy expires. - Suppose on April 7, 2005, a ladder on which Brian Barker is standing falls apart. He lands on his back and complains of some slight pain, but nothing major. Because the injury seems so slight, Brian does not file a claim for the injury. In 2007, however, he experiences recurring back pain and consults a physician, who decides the problem is a result of the 2005 injury. Brian files a claim against the manufacturer of the defective ladder, Newstep Ladder Company. Newstep had an occurrence CGL with Company A from 2000-2006; it took out a new occurrence CGL with Company B in 2007. Company A would pay for Brian's injury.

*(Commercial General Liability Insurance - Chapter 15)* Newly Acquired Organizations: CGL forms automatically cover newly formed or acquired organizations as a named insured under certain circumstances:

- The named insured must maintain ownership or majority interest of the new organization. - There must be no other similar insurance available to the organization. - Automatic coverage will be provided for 90 days or until the end of the policy period, whichever is earlier. - Coverage's A and B do not cover losses that occurred before the organization was acquired or formed. Coverage will continue after the automatic period expires if the insured reports the new organization to the insurer. Coverage is not automatically provided for newly acquired or formed partnerships, joint ventures, or limited liability companies.

*(Commercial General Liability Insurance - Chapter 15)* Others: Each of the following are insured under the CGL:

- The named insured's employees for acts within the scope of their employment or while performing duties related to the conduct of the insured's business (does not include executive officers of a corporation or managers of a limited liability company) - The insured's volunteer workers while performing duties related to the insured's business - A nonemployee or organization while acting as real estate manager for the named insured - If the named insured dies: - Any person or organization having temporary custody of the named insured's property, but only with respect to liability arising out of the maintenance or use of that property and only until a legal representative has been appointed for the insured - The insured's legal representative with respect to those duties

*(Commercial General Liability Insurance - Chapter 15)* Excluded under Coverage C of the Commercial General Liability Form are injuries:

- To any insured or to a tenant or employee, including a person injured on a part of the insureds premises that he normally occupies (does not apply to the insureds volunteer workers) - Payable under workers compensation or related laws - That occur to a person while he is part in athletics - Included in the products-completed operations hazard (these would be paid under Coverage A) - Excluded under Coverage A - Related to war

*(Commercial General Liability Insurance - Chapter 15)* 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

*(Commercial General Liability Insurance - Chapter 15)* Also excluded under Coverage A is liability:

- arising out of the transportation of mobile equipment by auto or the use of mobile equipment in any prearranged racing or related activity, or while practicing or preparing for such an activity; - arising out of war or warlike acts; - for damage to property owned, rented, or occupied by the insured or in the insured's care, custody, or control (does not apply to property and its contents for premises rented to the insured for seven consecutive days or less); - for damage to the insured's own product arising out of the product itself; - for damage to the insured's own work; - for claims based on defects, deficiencies, inadequacies, or dangerous conditions in the insured's products or work, and delays or failures to properly perform contracts; - related to recall of the insured's products or work because of a known or suspected defect; - for bodily injury arising out of personal and advertising injury; - arising out of loss or damage to electronic data; - arising out of violations of any law that prohibits or limits the distribution of material or information, including the federal Telephone Consumer Protection Act and CAN-SPAM Act.

*(Commercial General Liability Insurance - Chapter 15)* When the insured is determined to be responsible for damages in a lawsuit in the described territory, or in a settlement the insurer agrees to, the coverage territory includes all parts of the world if injury or damage arises out of:

- goods or products made or sold in the described territory - activities of a person whose home is in the described territory, but who is for a short time out of the described territory on business for the insured; and - personal and advertising offenses that take place through the internet.

*(Commercial General Liability Insurance - Chapter 15)* The Supplementary Payments Section provides that, if certain conditions are met, the insurer will:

- pay the defense cost for an indemnitee-a party who is not an insured who is under contract to provide goods and services to an insured-in addition to the policy's limit of liability; and - provide a defense for the indemnitee Among the conditions that must be met for this coverage to apply are that the insured and the indemnitee must be named in the same lawsuit and the liability assumed by the insured must be covered by the policy.

*(Commercial General Liability Insurance - Chapter 15)* Other types of liability exposures faced by businesses:

- work-related injuries to employee's - pollution - contractual agreements in which the insured assumes liability; and - ownership, maintenance, or use of autos, watercraft and aircraft However, because of the unique nature of these liability exposures, they are either excluded outright from the Commercial General Liability policy or may be covered only in certain circumstances or for limited amounts. More complete protection for these liability exposures is available under contracts specifically designed to cover them.

*(Commercial General Liability Insurance - Chapter 15)* If an event occurred and was reported during the policy period of a claims-made CGL, and a claim is first made 30 days after the policy expires, which basic extended reporting period applies?

60-day

*(Commercial General Liability Insurance - Chapter 15)* Indirect/Contingent Liability Exposure (sometimes called Owners and Contractors Protective)

A business may not only be held liable for its own actions, but in certain cases, be held liable for the actions of others. A business may have this kind of liability exposure for the actions of its employees, agents, contractors, or subcontractors. EX's include: - A claim against First National Bank when a passerby is injured at the construction site of a new bank branch being built by Rolland Construction Company.

*(Commercial General Liability Insurance - Chapter 15)* Retroactive Date

A 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. This date will be written in the Commercial General Liability Declarations.

*(Commercial General Liability Insurance - Chapter 15)* Auto

A land motor vehicle, trailer, or semi trailer, including any attached machinery or equipment, that is: - designed for travel on public roads - subject to compulsory or financial responsibility laws or other motor vehicle laws. It DOES NOT include mobile equipment.

*(Commercial General Liability Insurance - Chapter 15)* Leased Worker

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.

*(Commercial General Liability Insurance - Chapter 15)* Temporary Worker

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.

*(Commercial General Liability Insurance - Chapter 15)* Volunteer Worker

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.

*(Commercial General Liability Insurance - Chapter 15)* EX of a loss covered under Coverage A-bodily injury and property damage liability

A third party becomes ill after eating a meal catered by the insured.

*(Commercial General Liability Insurance - Chapter 15)* Contribution by Equal Shares

All insurers contribute equally up to the limit of the policy with the lowest limit. At that point, the insurer with the lowest limit stops paying since it has already paid its policys limit, and the other insurers share the remainder of the loss. This continues either until the loss has been payed in full or each company has paid its limit.

*(Commercial General Liability Insurance - Chapter 15)* Coverage B-personal and advertising injury additional exclusions:

Also contains a blanket exclusion for any type of pollution loss. In the past, some insureds were able to recover pollution liability losses under Coverage B because the policy's definition of personal injury includes "wrongful entry into another's premises." The CGL now contains a pollution exclusion for Coverage B to prevent insureds from obtaining personal and advertising injury coverage for pollution liability.