Commercial General Liability Flashcards
Interline Endorsements
Endorsements that may be used with more than one line of insurance
Coverage “A”
Bodily Injury and Property Damage. Always to a third party if the insured is found to be legally liable
Bodily Injury
bodily harm including required care, lost wages, lost services (landscaper, housekeeper, nurse, daycare while at the doctor, etc.), and death that results
Property Damage
damage to the property of others, including loss of use of that property
Split Limit
Per Person (BI) / All Persons (BI) / Property Damage
Coverage “B”
Personal and Advertising Injury
Personal Injury
injury to a person, other than bodily injury. Ex: slander, libel, invasion of privacy, false arrest, malicious prosecution, wrongful eviction
Advertising Injury
personal injury caused by advertising, which includes slander, libel, and invasion of privacy, and such things as copyright infringement, or stealing someone’s advertising idea
Supplemental Payments
Duty to defend related to Coverages “A” and “B”. Does not affect the liability limit. Paid in addition.
Coverage “C”
Medical Payments - covers medical expenses without regard to fault
Must be reported within ONE year.
Injuries to an insured or a tenant or employee of insured are NOT covered
Nonrenewal
requires 30-day notice to named insured and mortgagee
5-day notice to producer
Claims Made Coverage Form
claim must be reported after retroactive date, but before policy expiration date (or Extended Reporting Period)
Prior Acts Coverage
claims-made liability policy with no retroactive date
Extended Reporting Period (ERP)
a period of time following the expiration of a claims-made policy during which claims filed will be covered
Basic ERP (mini-tail)
begins automatically if policy is canceled or non-renewed. coverage for claims reported within 60 days of expiration
5-Year Basic ERP (midi-tail)
automatic, free of charge, and covers occurrences before mini-tail expire. 5 years to report
Supplemental ERP (maxi-tail)
covers all claims as long as the occurrence took place before policy expired. Additional premium charged for this coverage (limited to 200% annual CGL premium)
Premises and Operations
Aggregate amount the covers legal liability of a business with premise OR operations exposures
Premise: at store, office, etc
Operations: on a job site
Products and Completed Operations
Aggregate amount covers products no longer in control of insured and off premises; and operations that are completed - for example worksite abandoned
Contractual Liability
Coverage included in CGL policies for “insured contracts” for Coverage “A” only.
Insured contracts: any contract that is necessary part of business
Hold Harmless Agreement
one party assumes the liability inherent in a situation.
Cancellation - Return Premium
By insured: 30 days - short rate basis
By insurer: 45 days - pro rata basis
Negligence (4 Elements)
- Legal duty to act or not act
- Breach of that duty
- Resulting injury or damage
- Breach of duty must be proximate cause of the injury/damage
Premium Audit Condition
Allows insurance company to audit the insured’s records for up to 3 years following the expiration of the policy