Chapter 9: Commercial General Liability Flashcards
2 types of Commercial General Liability (CGL) forms
Occurrence and Claims-Made
Difference between two CGL forms
Occurrence- injury/damage occurs during the policy period regardless of when claim is reported
Claims Made- claims occurring on/after the retroactive date, made during the policy period or extended reporting period
2 major sublines of the CGL and examples of each
Premises and Operations- employee carpenter drops a hammer from a rood you are replacing and injures someone walking by
Products and Completed Operations- Customer buys steamer from store. Customer gets home and uses the steamer, it malfunctions, causing steam to blow back in the customer’s face
Under COV A- Bodily Injury/property damage, Contractual Liability is usually excluded from CGL except for 6 insured contracts (LEASE-T)
Lease of premises
Easement or license agreement
Agreement to indemnify a municipality
Sidetrack Agreement
Elevator maintenance agreement
Tort Liability of a third party
COV B- Personal and Advertising Injury Liability
pays sums for which the insured becomes legally obligated for personal injury or advertising injury
Ex) slander, invasion of privacy, copyright infringement
*losses expressed as dollars per person/organization
COV C- Medical Payments
medical expenses for bodily injury caused by an accident on the premises the named insured owns/rents/uses for accidents because of their operations
-regardless of fault or negligence
-one year from the date of the accident
Supplementary Payments and Coverages
*which they apply
pays resulting expenses from the insurer’s defense of any claim/suit
1. all expenses the insurer incurs
2. up to $250 bail bonds because of accidents/traffic violation w/ use of vehicle covered
3. Premiums on bonds
4. interest on any judgement
5. other reasonable expenses
6. All costs taxed against the insured in the suit
Who is insured under CGL
Named Insured
Automatic Insureds- employees
Additional Insureds- specifically named or qualify as member
6 limits of insurance for CGL
- General Aggregate (most paid for COV A&B)
- Products & Completed Operations Aggregate (most paid COV A)
- Personal & Advertising Injury
- Per Occurrence Limits
- Medical Expense Limit
- Damage to Premise Rented to You
Coverage territory
USA & Puerto Rico/Canada
worldwide for injuries/damages if goods/products are temporarily outside coverage territory and internet activities
Employee
includes leased worker but not a temp worker
Executive officer
person holding an officer’s position created by the insured
Impaired property
tangible property but not insureds property, cannot be used b/c includes insureds product/work that is thought to be defective/dangerous/inadequate
insured contract (LEASE-T)
Lease of premises
Easement or license agreement
Agreement to indemnify a municipality
Sidetrack Agreement
Elevator maintenance agreement
Tort Liability of a third party
Loading or unloading
handling of property
Mobile equipment
bulldozers, farm machinery, forklifts, off public roads
vehicles solely used on/next to insured premises
vehicles on crawler treads
cranes, shovels, loaders, diggers
occurrence
accident including continuous or repeated exposure to substantially the same conditions
Personal and Advertising injury
injury from the following…
false arrent, detention or imprisonment
malicious prosecution
wrongful eviction, entry or invasion of privacy
oral or written publications of material that slanders
use of another’s advertising ideas
Infringement of copyright
Products and Completed operations hazard
bodily injury or property damage that arises out of insured’s product
Property Damage
physical damage to tangible property including loss of use
loss of use to tangible property not physically injured
Temporary worker
seasonal/short-term workload
substitute for a permanent employee on leave
Volunteer worker
no employee of insured and donates own time (w/o payment)
your product
any goods/products manufactured, sold, distributed by named insured
Your work
work/operations performed by named insured or on behalf
Trigger
how coverage for claim is activated
Retroactive date
determines when coverage starts; in order for it to apply, the occurrence must take place after the retroactive date
*Q’s to ask for determining…when was occurrence, what is retroactive data, when was claim made
*if occurrence was before retroactive date, no coverage
*if occurrence was after retroactive date and claim was made during policy period, coverage applies
Extended reporting periods
used to provide coverage for claims that reported after a claims-made policy ends
basic extended reporting period (BERP)
mini tail- additional 60 days after policy termination to make any claims that occurred during policy period
Midi tail- up to 5 years after policy termination to make a claim, provided the occurrence is reported w/n 60 days of policy termination and loss occurred during policy period
supplemental extended reporting period
extended the reporting period forever; purchase; requested in writing by insured w/n 60 days on policy period. Premium cannot exceed 200% of the last annual CGL premium
