ch 7 Flashcards
Exclusions:
A) Coverage A- Bodily Injury and Property Damage Liability
B) Coverage B- Personal Advertising Injury
C) Medical Payments
A) Exclusions include intentional injury, liability assumed under a contract, liquor liability, anything covered by worker’s compensation, most pollution related losses, or liability from use of autos, aircraft, or watercraft. The policy will cover liability assumed under a contract if it is for things the business would normally be liable for even without the agreement.
B) Exclusions include knowingly violating others rights, knowingly publishing false material, criminal acts committed by or under direction of the insured, liability assumed under a contract the business would normally not be liable for, breach of contract, failure of work or products to fulfill advertised promises, incorrect descriptions or prices, any liability by an insured in a media, advertising, or Internet business, copyright, patent or trademark infringement other than advertisement of a copyright or slogan, any offense by someone in an internet related business, or by a internet chat room or bulletin board of the insured, or unauthorized use of another’s name or product in an e-mail address or domain name, or out of acts of war, or violations of the law including those related to do not call lists or spam.
C) Exclusions include injuries to any insured, tenant or employee of the insured, or a person injured while occupying part of the insured premises, injuries payable under workers compensation, injuries that occur to a person taking part in athletics, injuries included in products/completed operations liability, injuries excluded under Coverage A, and injuries related to an act of war.
Supplementary Payments – these are the amounts the insurer will pay ‘in addition’ to the stated policy limits for :
- All expenses incurred by the insurance company
- Up to $250 for the cost of bail bonds
- Cost bonds to release attachments
- Reasonable expenses incurred by the insured at the request of the insurance company to assist in the in the defense of claim including $250 per day for loss of earnings
- Court costs assessed against the insured in a suit
- Any prejudgment or postjudgment interest
- Defense costs for an insured
Commercial general liability includes 3 major liability coverages:
All businesses need CGL to cover the risk of liability. It can be written alone or as part of a commercial package policy.
It can be written as a Claims-made Form or Occurrence Form. The difference is what triggers the coverage, when the covered event occurred or when it was reported to the insurance company.
- Coverage A – Bodily Injury and Property Damage Liability
- Coverage B – Personal and Advertising Injury Liability
- Coverage C – Medical Payments
Occurrence
Pay claims for liability losses that occur during the policy period even if the loss was not discovered or reported for years after the policy expired
Claims-made
Pays for liability losses reported during the policy period (so long as the loss occurred on or after the retroactive date.
Retroactive Date –
To protect against insuring occurrences and before the policy was written, there is a retroactive date. The policy will cover claims reported during the policy period, but only if the occurrence was after the retroactive date. The retroactive date is often the original date the policy with the insurance company was written, but a policy replaces another claims made policy, they may carry forward the same retroactive date to prevent a gap in coverage.
Extra Expense Form
Extra expense coverage can be purchased separately. It covers expenses more than normal business expenses the business will incur to keep it operational following a direct loss to the business property. It may include the expenses of moving to a new location or to rent new equipment. It does not include business income that wouldn’t have been received had the damage not occurred. Additional coverages include extra expenses to operate after damage to new locations, or additions or when civil authority prohibits use.
Burglary
taking property from inside the premises by a person illegally entering
Safe burglary
- taking property from a locked safe or vault by a person illegally entering the safe.
Robbery
taking property from the care of a person by a threat to cause bodily harm or committing an unlawful act witnessed by the person.
Theft
- any unlawful taking of property including burglary or robbery.
Inside the premises– Theft of Money and Securities
provides coverage for loss of money and securities from inside the premises resulting from theft. Stock or merchandise is excluded. Included is damage to the exterior resulting from an actual or attempted theft.
Inside the premises– Robbery or Safe Burglary of Other Property
loss or damage to other property inside the premises resulting from actual or attempted robbery of a custodian, safe or vault, or safe burglary. Coverage includes building damage from an actual or attempted robbery or safe burglary or damage to the safe. There is a $5000 per occurrence limit for precious metals, precious or semi precious stones, or furs.
