Commercial Liability Flashcards
What is the liability of a Bailee?
Tort law requires the expected level of care of same business
Contract law Bailey’s can assume other responsibilities under contract
When is an employer not liable for the employee?
If they don’t control the work example delegating work to a non-employee, independent frolic, using employer’s property without permission for their own purpose
When would an occupier and a contractor have joint liability?
Work is inherently dangerous
Occupier supplies defective materials or supplies
Occupy your controls work
Give an example of a special damage
Out-of-pocket expenses, has a receipt.
For example an ambulance or medical
Give an example of exemplary or punitive damages
Designed to punish the defendant. A fine
Give an example of a nominal damage
Awarded to establish validity of claims when no damage exist. Discourages litigations where costs are greater than thr Awards.
Define occurrence
An accident including a continuous repeated exposure to the same harmful conditions
Define trigger
The occurrence that caused the claim to arise
When would An Occurrence based trigger apply to a claim
These policies only respond if the claim occurred during the policy term. If lost occurred prior, claim on the prior policy
When would a claims-made trigger payout
It doesn’t matter when the loss occurred it only matters when it’s claimed. The claim must occur during the policy term.
True or false the aggregate limit will remain the same regardless of how many claims wrote the policy
False
It is the max payable with in a policy term it gets smaller each time you claim within the term.
What are the five duties of the insured in the event of a loss
- Report any occurrences that might lead to a claim even if not covered
- Forward legal documents ASAP
- Authorize insurer to get info
4, Assist - No voluntary payments or assume liability without consent
Give 5 examples of supplementary payments
- Defence costs
- expenses incurred by insured in an assistance,
- court costs,
- bonds to release attachments,
- interest payable on Judgement amount
What is the three types of liability coverage provided in Section 1 coverage A?
- Tort liability
- Some contractual liability
- Statutory liability
What does section 1 coverage A insurer
Bodily injury
Sickness/disease
Death resulting from either one
Physical damage to tangible property includes loss of use
Loss of use two undamaged tangible property
What does contingent employers liability insurance cover
Employers that are liable for employee claims if there’s no WCB or if WCB denies coverage.
What are three vehicle related liability examples that would be covered
- Defective vehicle or improper maintenance of vehicle leased out
- Use of attached equipment example wood chipper
- Benefits denied by WCB if paid as required
Under section 1 coverage B personal and advertising injury, name 5 examples of coverage
Personal and advertising injury.
- False arrest detention or imprisonment example wrongfully detained alleged shoplifter
- Malicious prosecution
- Wrongful entry or eviction
- Defamation
- Violation of privacy
Define personal injury under coverage B personal and advertising
Damage to character or reputation. Slander is spoken. Libel is written
What is Section 1 coverage C
Medical payments. Covers minor medical expenses due to premise or operations.
What is Section 1 coverage D?
Tenants legal liability. Can be legally responsible for damage to rented property.
Name 6 common exclusions for Section 1 A-D
- Asbestos
- fungi spores
- nuclear energy,
- pollution,
- terrorism,
- war risks
You have purchased pollution Liability policy. Name 4 items that work be covered by this extension
- Losses from interior HVAC
- Losses from contractors operations if insured
- Hostile fire
- Lost related to clean up or assessment of pollutants
What is section 2 of a commercial general liability
Definitions of the insured
Provide some examples of other insured parties under Section 2 of CGL
Owners, Partners, spouses, Partnerships, trust trustee, employees or volunteers, real estate manager IE condo Corp property manager
What does section 3 under the commercial general liability section cover
Limits of insurance
Aggregate and per occurrence limit
Name 4 types of policies that offer a claims-made bases:
- Brokers E&O
- Directors & officers
- Architects and engineers
- Medical practitioner commercial equipment impairment liability
What makes up an aggregate limit?
Covers all payments made in section A through C. Section D has its own limit
Define cross liability
Insurance are treated as if they had two separate policies.
Breach of conditions by one doesn’t affect the other
Exclusions can apply to one but not the other
True or false
Commercial general liability always covers the property of others
False.
Property is never covered by CGL
What does a Bailey legal liability policy cover?
Losses to third party property caused by negligence only.
What does the Bailey customers floater cover?
Provides all risk coverage for assumed liability. Bailey has full responsibility, no negligence is needed. Helps avoid lawsuits and bad press.
If customers property is damaged it will pay.
Give an example of when completed operations coverage would be used
If work is defective, person doing work can be sued for damages.
Example deck collapses injuring someone the deck builder can be sued.
What types of legal action can be taken against Directors & officers liability
Company lawsuits
Shareholder suit
Securities suits
Regulatory action
Name three duties as per common law and corporate law statute for Directors & officers
- Duty of care for corporations, shareholders and stakeholders
- Duty to disclose conflicts of interest
- Delegation of Duties do not remove liability even if done with due diligence
What are three statutory duties of Directors & officers
- Employee legislation example paying wages, pensions, hiring / firing
- Tax legislation
- Organization specific statues example Environmental Protection Act
what does the employers liability endorsement remove?
It removes the CGL exclusion for employee bodily injury and property damage during work
What does the environmental impairment liability policy cover?
Covers liability and cleanup of sudden or gradual pollution.
What does products liability protect the business from?
Liability for claims from defects/ malfunction of a product.
Manufacturing flaws
Design defect
Defective warnings or instructions
