Commercial General Liability Coverage Flashcards
Businesses face a number of liability exposures relating to their operations, and protection against the resulting liability claims is most frequently provided by the _______.
Commercial General Liability policy
The possibility of being legally liable for injury or damage at the insured’s place of business is the _______.
Premises exposure
Possible liability arising out of doing work away from the insured’s place of business is the _______.
operations exposure
After the insured performs services or work at these off-premises locations and leaves the job site, possible liability for defective workmanship is the _______.
completed operations exposure
After the insured sells goods or merchandise and the goods leave the premises, claims relating to defective goods or improper warnings represent the _______.
products exposure
Businesses may also have _______ for actions or failures to act per the language of a contract or agreement.
contractual liability
The CGL covers liability arising out of certain contracts, known as _______.
insured contracts
These include a lease of premises, _______, agreement to indemnify the municipality, sidetrack agreement, and elevator maintenance agreement.
Ease Agreement
Contracts that indemnify a railroad for liability arising out of _______ operations are not insured contracts.
Construction or demolition
A CGL policy may be written on one of two forms that differ based on the _______.
Coverage Trigger
Under the _______, occurrences that take place during the policy period are covered. Liability claims related to those occurrences may be received and recorded at any time, even after policy expiration.
Occurrence Form
Under the _______, the occurrence must take place and the claim must be made during specified times.
Claims Made Form
Occurrences must take place between the _______ and policy expiration. This date could be the policy inception date, a date the insurer agrees to, or completely removed with Prior Acts coverage.
Retroactive Date
Claims must be made during the policy period or during a(n) _______.
extended reporting period
The Claims Made form automatically provides a(n) _______ extended reporting period.
basic
With the mini tail, claims related to unreported occurrences that took place during the policy period may be reported within _______ of policy expiration. With the midi tail, new claims related to previously reported occurrences that took place during the policy period may be reported within 5 years of policy expiration.
60 days
Another reporting period of unlimited duration, called the _______ extended reporting period, is available by endorsement.
Supplemental
Both CGL forms offer the same coverages under Section I. Coverage A pays for damages resulting from claims of _______ for which the insured is legally liable.
bodily injury or property damage
The insurer also has the _______ the insured against suits seeking these damages.
duty to defend
Occurrences must take place during the policy period and in the _______, meaning the United States, its territories, Puerto Rico, and Canada.
Coverage Territory
Coverage A includes coverages for liability arising out of the insured’s products and completed operations, known as the _______.
products-completed operations hazard
However, coverage is not provided if the insured’s product is recalled because of a defect—this is known as the _______.
host liquor liability
Coverage A covers the insured’s _______ and other damage to property rented to the insured, with certain conditions.
fire legal liability
CGL Coverage is also provided for liability resulting from specific types of autos and watercraft. Watercraft ashore on the insured’s premises and non-owned watercraft less than _______ are covered, as long as they do not carry people or property for a fee.
26 ft long
_______, like bulldozers and power cranes, are also covered.
Mobile Equipment
However, liability arising from _______ by autos owned or operated by the insured is excluded. CGL
transporting mobile equipment
Coverage A has a number of exclusions, some of which are common to liability policies, such as excluding expected or intended injury, injuries resulting from war, and physical damage to _______.
the insured’s property or product
Contracts are only covered if they are insured contracts or if liability would _______ of the contract being in place.
exist reguardless
Liquor liability is excluded for insureds who are in the business of _______ alcoholic beverages.
manufacturing, distributing, selling, serving, or furnishing
Coverage is not provided for injuries to _______ arising out of the employee’s work duties, as this liability is covered by Workers’ Compensation and Employers Liability policies.
employees or their relatives
Liability arising out of actual, alleged, or threatened _______ would also be covered by a separate policy.
Pollution
Other than the covered vehicles and watercraft, coverage for liability arising from _______, autos, and watercraft would also be provided by other policies.
Aircraft
CGL Coverage B provides liability coverage for _______, including the insurer’s duty to defend the insured.
personal and advertising injury
Coverage B excludes knowingly violating another person’s rights, knowingly publishing false material, and liability arising from _______ the insured hosts.
electronic chat rooms
Coverage is also not provided for _______ descriptions in advertisements or the failure of products to conform to advertising standards.
wrongful price
CGL Coverage B has its own _______, which is the most the insurer will pay for personal and advertising injuries sustained by any one person or organization.
personal and advertising injury limit
Because Coverages A and B include the insurer’s duty to defend, _______ are also provided for those coverages.
supplementary payments
These include claim-related expenses, the cost of bail bonds and bonds to release attachments, pre- and post judgment interest, and up to _______ per day for loss of earnings because the insured must assist with the defense.
$250
CGL Coverage C offers _______ who incur medical expenses due to bodily injury caused by an accident on the insured’s premises or from the insured’s operations.
Medical Payments to others
Coverage B Med Payments are made regardless of fault, and they must be incurred within _______ of the date of the accident.
1 year
Coverage B CGL Payments may be made to customers and _______.
voluntary workers
CGL The _______ is the most the insurer will pay for medical expenses incurred by any one person.
medical expense limit
CGL Coverage B Payments are not provided if the bodily injury results from a Coverage A exclusion, such as coverages provided by Workers’ Compensation. They are also not provided to an _______, their employees, or anyone who normally occupies the insured premises.
insured
CGL Coverage B Payments are also not provided if they are included in the products-completed operations hazard or result from _______.
athletic activities
CGL: Section II indicates _______ under the policy.
who is an insured
CGL Some people are considered insureds based on how the named insured is _______ on the Declarations page.
designated
CGL Section II: For example, if the named insured is a corporation, insureds would include the corporation, its _______, its directors, and its stockholders.
executive officers
CGL Seciont II: Besides these, other parties are also insureds when performing duties related to the insured’s business, like the insured’s volunteer workers, employees, _______, and legal representative.
Real Estate Manage
Section III CGL: describes the multiple _______ that apply to a CGL policy.
limits of insurance
Section III CGL: _______ aggregate limits apply, which will be the most the insurer will pay for certain coverages during the policy period.
two
Section III CGL: The _______ is the most the insurer will pay for damages included in the products-completed operations hazard.
products-completed operations aggregate limit
Section III CGL: The _______ is the most the insurer will pay for other Coverage A damages, Coverage B damages, and Coverage C expenses.
general aggregate limit
Section III CGL: In addition to the aggregate limits and the limits applying exclusively to Coverage B and to Coverage C, there is also an _______, which is the most the insurer will pay for damages under Coverage A and expenses under Coverage C arising out of any one occurrence.
each occurrence limit
Section III CGL: The _______ is the most the insurer will pay for property damage to any one premises rented to the insured.
damages to premises rented to you limit
Section IV CGL: Section IV lists the policy’s _______.
conditions
Section IV CGL: The insurer must be notified of _______ that may result in a claim as soon as practicable.
any occurance
Section IV CGL: The premium paid for the policy is only a _______, and the earned premium will be based on a premium audit at the end of the policy period.
deposit premium
Section IV CGL: CGL coverage may be written on a primary basis or excess basis. If written on a primary basis, the insurer will share the loss with other collectible insurance on a(n) _______ basis.
contribution by equal shares
Section IV CGL: Section V includes all of the policy’s _______, like distinguishing between autos and mobile equipment.
definitions
Section IV CGL: Generally, autos are used _______ public roads and must meet financial responsibility requirements, while mobile equipment is used off public roads and usually does not need to meet financial responsibility requirements.
on
Section IV CGL: If a vehicle is _______ and has a permanently attached cherry picker, generator, or similar equipment, it is an auto.
self-propelled
Section IV CGL:If a vehicle is _______ and has that same equipment permanently attached, it is mobile equipment.
not self-propelled
Section IV CGL: Employees include leased workers, but do not include _______.
temporary workers
