Commercial General Liability Flashcards
The two CGL forms
occurrence & claims made
CGL form structure
Sec I A: BI & PD B: Personal and advertising injury C: Med payments Sec II-Who is an insured Sec III-Limits of insurance Sec IV-Extended Reporting periods Sec VI-Definitions
CGL Sec I Coverage A: BI & PD exclusions
- expected or intentional injury
- contractual liability
- liquor liability
- worker’s comp & employer’s liability
- pollution
- aircraft, auto, watercraft
- mobile equipment
- war
- damage to property
- the insured’s product
- the insured’s work
- impaired property
- recall of products, work, impaired property
- recording and distributing material in violation of comm. laws
CGL Sec I Coverage B: Personal and advertising injury exclusions
- knowing violation of rights of another
- material published with knowledge of falsity
- material published prior to policy period
- criminal acts
- contractual liability
- breach of contract
- quality or performance of goods
- wrong description of prices
- infringement of copyright, patent, trademark, or secret
- insureds in media and internet businesses
- electronic chatrooms/bulletin boards
- unauthorized use of another person’s name or product
- pollution
- war
- recording and distributing material in violation of comm. laws
CGL Sec I Coverage C: Med payments exclusions
- any insured except volunteers
- employees or hires of insured
- tenants of insured
- ppl injured in physical games
- war, insurrection, rebellion
- if excluded under coverage A
CGL supplementary payments- Coverages A and B
- any expenses incurred by the insurer
- up to $250 bail bonds, cost to release attachments
- reasonable expenses up to $250/day
- court costs(not attorney fees)
- prejudgment interest
- interest that accrues on any judgment
CGL Sec II -Who is an insured?
- Individuals(sole proprietor)
- Partnership/joint venture
- LLC
- other organizations
- Trust
CGL Sec III-Limits of liability
General aggregate
- BI & PD occurrence
- personal & advert injury occurrence
- damage to property rented to you
- med payments
Products & completes operations aggregate
- BI & PD due to a products or completed operations hazard
- subject to the per occurrence limit
Retroactive date (claims made)
A date entered in the declarations page to alert the insured that any claim that happens prior to this date will not be covered by the policy
CGL Occurrence form
pays for BI & PD that occurs DURING THE POLICY PERIOD even if the loss is not discovered or reported until months or years after the policy expiration
Occurrence Vs. Claims made trigger
The policy in force when the claim is first made responds if a claims made trigger, and the policy in force when the event occurred responds if an occurrence trigger
Basic extended reporting period
The period is extended to the insured without an additional premium charge and is broken down into 2 time frames and 2 situations
Known claim
If the insured reports reports a claim not later than 60 days after the policy expiration, the claim is covered for up to a 5 year period of time (midi tail)
Unknown claim
Coverage is only extended for 60 days after the policy expiration.
CGL supplemental reporting period
- must make election to purchase coverage within 60 days of policy exp.
- price of extension will not exceed 200% of annual premium
