CGL Flashcards
Coverage A - BI and PD Liability (What Coverages Provided? 6)
CCCOPP
Contractual
Contingent
Completed Operations
Operations
Premises
Products
Coverage B - Personal and Advertising Injury Liability (What Coverages Provided? 2)
CO
Contingent
Operations
Coverage C - Medical Payments (2 coverage types)
PO
Premises
Operations
5 Sections of a CGL Coverage Form
1- Coverages
2- Who is an insured
3 - Limits
4 - Conditons
5 - Definitions
(8) Types of Liability Exposure
CCCAPPP B (no CCCAPPP Bitch)
Completed Operations: Completed work, left their premise
- If you leave premise in unsafe
condition, then may not be covered
Contingent Liability: Work performed for NI by someone else
Contractual Liability: One party assuming responsibility for another party
Advertising liability: Misappropriation of advertising ideas, copyright violation
Personal Injury: Liability arising from intentional torts
Products: Not in possession of manufacturer, seller AND injury takes place away from premise
- If takes place on premise, then a
premise exposure
Premise: Owners, landlords, tenants
Business Operation Liability: Anywhere where biz operations conducted
Who is an insured? (5)
- Individual (spouse included)
- Partnership or Joint Venture (members, partners, spouses
LLC (members)
Other Type of Org (Directors, Executives)
Truestees
Employees + Volunteers NOT considered insureds when they… (5)
OF3PP
Other Parts of Org - BI or P&A to NI or others part of org
Family - Consequential Injury to family of injured co-employee
3rd party action as result of above
Professional Care - BI and P&A from failure to provide professional health care
PD to property in CCC
Non-Volunteer or employees that are insured (3)
- Real estate manager
- Property in Temp custody of someone else if you die
Legal rep if you die
- Property in Temp custody of someone else if you die
Newly Acquired of Formed Orgs that are insured (# of days, 1 Exclusion, doesn’t include 3 types of orgs )
90 days or end of policy period
○ 90 Days or expiration
Exclude BI or PD or P&A from before org acquired
○ Prior Acts
Doesn’t include partnership, joint venture or LLC
Who is not insured (3)
- LLC’s, JV, Partnership not in decs
- Coverage Gap
May need discontinued products coverage
Insuring Agreement 2 Promises
- Legally obligated damages from BI/PD
Right / Duty to defend against any suit
Coverage only applies if (2)
- During policy period
In coverage Territory
PD Definition (2)
- Physical injury to tangible property resulting in loss of use
- Loss of use to tangible property that is not physically injured
○ Power cut to mall results in revenue loss example
- Loss of use to tangible property that is not physically injured
Occurrence Definition
- Accident, continuous or repeated exposure to same harmful conditions
Coverage Territory
- US + Territories and Possessions
- PR
- Canada
- International waters or airspace if traveling to the places above
- All other parts of world via
○ Made or sold by you in territory
above
○ Short business trips
○ P&A offenses through internet
BI / PD deemed known when (3)
- Insured reports to us or any carrier
- Written or verbal demand for damages
- Becomes aware of any other means that BI or PD ahs occurred or begun to occur
16 Coverage A Exclusions
(4D, 2WARPE, CL)
Damage to your product
Damage to impaired property or property not physically injured
Damage to your work
Damage to property
War
Workers Comp or similar laws
Aircraft, auto or watercraft
Access or Disclosure of Confidential or Personal Info and Data-Related Liability
Recall of products, work of impaired property
Recording and Distribution of Material or Information in Violation of Law
Pollution
Personal and Advertising Injury
Expected or Intended Injury
Equipment that’s mobile
Contractual Liability
Liquor Liability
Coverage A Exclusion - Liquor Liability (2 Excluded Losses and 2 Exceptions)
Excluded Losses
§ Making, selling serving, distributing
§ Anyone under your supervision
Exceptions
BYOB establishments
Host Liquor liability
Coverage A Exclusion - Expected or intended injury (1 exception)
Exception: Reasonable force to protect person or property
Coverage A Exclusion - Aircraft, auto or watercraft (Auto Definition / 1 exclusion / 5 exceptions)
Auto Definition: Vehicle or machinery or equipment attached
Excludes
§ Ownership, maintenance, use or entrustment to others, including Ops
Exceptions
§ Watercraft while ashore on premises
§ Non-Owned watercraft less than 26 feet and not with a carry charge exposure § Parking of autos
§ Insured contract for aircraft or watercraft
§ BI or PD arising out of operation of machinery or equipment □ Attached mobile equipment that is considered an auto due to compulsory or financial responsibility law or other moto insurance law OR □ Cherry pickers, air compressors, pumps and generators that are mounted on automobile or truck chasssis and are considred autos by definition ® Movement of truck or movement of equipment
Coverage A Exclusion - Damage to your product (1)
Resulting damage, but not damage to insured’s products
Coverage A Exclusion - Damage to impaired property or property not physically injured (impaired property definition / one exclusion / one exception)
Impaired Property Definition
§ Tangible property that cannot be used or is less useful because:
□ It incorporates the NI product or work that is known or thought to be defective, deficient, inadequate or dangerous
□ The NI has failed to fulfill terms of contract or agreement
○ Has to be repairable
○ Excludes property damage to impaired property or to property that hasn’t been physically injured
§ Arising out of defect, deficiency, inadequacy, or dangerous conditions
§ Arising out of a delay or failure to perform in accordance to contract or agreement
Exception
§ Coverage for loss of use of other property arising out of sudden or accidental physical injury to NI product or NI work after it has been put to its intended use
Coverage A Exclusion - Contractual Liability (Can’t contract away ___ / 2 exceptions / Insured contract defintion 6 / not an insured contract 3)
Can’t contract away negligence
Hold Harmless Agreements (Specific, limited, broad)
Exceptions
§ Liability in absence of contract
§ Liability assumed in contract that is an insured contract and only with respect o injury or damage that occurs after contract is executed
Reasonable defense expenses if assumed in contract
Insured Contract Definition
- LEASEPlus
□ Lease of Premise except….
□ Easment of license agreement except…
□ An obligation to indemnify a municpality as required by ordinance except….
□ Sidetrack agreement
□ Elevator maintenance agreement
□ Plus, any contract in which NI assumes tort liability of anotehr party to pay for BI or PD to a third person
- Negligence considered tort
Not insured contract
□ Railroad indemnity agreement
□ Architect o, engineer or surveyor indmenity agreement
□ Architect, engineer, or surveyor PD and BI rendering or failure to render professional services
Coverage A Exclusion - Pollution (Definition / 3 exclusions, 1 with 2 exceptions and1 with 3 exceptions / 2 inferred exceptions)
Definition
§ 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
Exclusion 1
- Excludes at or from any premises owned or occupied by, or rented or loaned to any insured
Exceptions
§ Fire and consequential damage (smoke, fumes, vapors)
§ Owner added as AI to contractor insured because contractor working on their premise
- BI caused by heating equipment
Exclusion 2
§ Handling, storage, disposal, processing, treatment of waste
Exclusion 3
§ Pollutants brought to premise or in connection to ops
§ Exceptions
□ Fuels from mobile equipment leaking related to operation
□ Gases, fumes, vapors from materials brought into building with connection to ops
□ Fire and consequential damage
Inferred Exceptions
§ Certain off premises operations
§ Most product-completed operations exposures
Coverage A Exclusion - Mobile Equipment (Definition 4 / Specifically described autos 3 / Exclusions 2 /
Definition (4) (Off, On, Crawl, Move)
§ Principally off public roads
§ On or next to premises you on primarily
§ Crawler Treads
§ Primarily providing mobility to permanently mounted equipment
Specifically Described as Autos (3)
§ Snow removal, road maintenance, but not construction or resurfacing
§ Cherry pickers and similar devices mounted on a truck chasis
§ Air compressors, pumps and generators.
Exclusions
§ Transportation of mobile equipment by an auto
§ Use in racing, speed, demo, stunts
Coverage A Exclusion - Damage to property (Excludes damage to 5 / Exceptions 4 )
Excludes Damage to
§NI Property
§ Previous premises
§ Property loaned to NI
§ PP in CCC
§ Particular part being worked on during ops
Exceptions
§ PD to premises rented for 7 or fewer consecutive days (fire only after 7)
§ Speculative buildings that are vacant
§ Sidetrack agreements
§ Prod Completed Op Hazard
Coverage A Exclusion - Damage to your work (1 Exclusion / Your work definition 2 / 1 exception)
Excludes damage to NI work and prod completed
Definition of your work
□ Your ops or your subs ops
□ Materials connected to those ops
Exception
§ Damage caused by subcontractor (carrier will subrogate the sub)
Personal and Advertising Injury Definition (7)
F SPACE P
Injury + Consequential injury from following offenses
□ False arrest, detention or imprisonment
□ Prosecution that’s malicious
□ Eviction that is wrongful, wrongful entry, invasion of private occupancy
□ Slander, libel, disparagement
□ Privacy rights violation
□ Advertising idea theft
- Copyright, trade dress or slogan infringement in the NI’s advertisement
P&A Exclusions (16)
FFUCCC W VIPPPPER Bitch
○ Falsely Published material with knowledge
○ Failure to Conform to Statements -Quality or Performance of Goods
○ Unauthorized Use Of Another’s Name Or Product
○ Contractual Liability
○ Criminal Acts
○ Copyright, Patent, Trademark or Trade Secret Infringement
○ War
○ Violation of Rights of Another Knowingly
○ Internet and Media Type Businesses - Insureds
○ Published Material prior to policy period
○ Price Description Incorrect
○ Pollution-Related
○ Pollution
○ Electronic Chatrooms Or Bulletin Boards (hosts, Owns, controls)
○Recording And Distribution Of Material Or Information In Violation Of Law
○ Breach of Contract
Medical Payments - Insuring Agreement (5) (Pays medical expenses caused by accident __3__ , provided that __2_)
(OOO provided that Territory, Term, One year, examination)
Pays medical expenses caused by an accident
§ On premises
§ On ways Next to Premises
§ Operations of the insured
§ Provided that
□ In territory and policy term
□ Reported within one year of accident Injured person
complies with examination
Medical Payments - Exclusions (7)
CHAW IPA
Coverage A Exclusions
Hired person
Any insured other than volunteers
WC and similar laws
Injury on Normally Occupied Premises
Products-Completed Ops
Athletics
Supp Payments - Conditions for Defense and litigations defenses being paid (6)
SUCCON this to get payment
In writing
□ Cooperate
□ Send docs
□ Notify insurer
- Use available insurance
Provides written Authorization
□ Obtain records and info related
□ Conduct and control the defense during suit
Damage to Premises Rented to You Limit (Which limit under and 2 ways paid out)
Each Occurrence Limit
Most paid under coverage A for
§ PD not caused by fire for 7 or fewer days
§ PD caused by fire to any one premises rented to NI
CGL Conditions (4)
NDAD
○ Notify carrier ASAP
○ Details - Record Specifics
○ Authorization to carrier and cooperate
- Don’t move money without permission
Separation of Insureds
can sue each other under same limits
Limits do not apply separately
Cross suits liability
Subrogation Definition
The assignment to an insurer by terms of the policy or by law, after payment of a loss, of the rights of the insured to recover the amount of the loss from one legally liable for it.
Waiver of Subrogation Definition
An agreement between two parties in which one party agrees to waive subrogation rights against another in the event of a loss
Must be before loss
3 Types of Insured
Named Insureds
Automatic Insureds
Non-Automatic Insureds (AI)
AI Definition
Intended to signify those persons or organizations that generally are not automatically included as insureds under the liability policy of another, but for whom the named insured desires or is required to provide a certain degree of protection under its liability policies.”
Reasons why Others Request AI (5)
- Risk transfer safety
- Direct rights under NI policy
- Protects from subrogation
- Higher total limits (potentially)
- Cost of insurance reduction (potentially)
Why NI would add an AI (2)
Contract relationship requirement
Close relation with AI
Problems for NI adding AI (4)
SUC D
Sharing of policy limits
Unintended coverage provided
Compliance problems (different types of forms)
Defense conflicts
Problems for AI (4)
CCDD
- Disputes over coverage
- Control of defense lost
- Coverage limited under current forms
- Dependent on someone else’s insurance
Why use Auto AI endorsements 2
Reduce admin expense
Easier to manage requests
Noncontributory Definition
Won’t use limits of AI policy. NI is primary in event of claim
Other Insurance Clause Purpose
Wording saying your excess if you are an AI
