Commercial Liability

Question 1

What is the liability of a Bailee?

Answer 1

Tort law requires the expected level of care of same business

Contract law Bailey’s can assume other responsibilities under contract

Question 2

When is an employer not liable for the employee?

Answer 2

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

Question 3

When would an occupier and a contractor have joint liability?

Answer 3

Work is inherently dangerous
Occupier supplies defective materials or supplies
Occupy your controls work

Question 4

Give an example of a special damage

Answer 4

Out-of-pocket expenses, has a receipt.

For example an ambulance or medical

Question 5

Give an example of exemplary or punitive damages

Answer 5

Designed to punish the defendant. A fine

Question 6

Give an example of a nominal damage

Answer 6

Awarded to establish validity of claims when no damage exist. Discourages litigations where costs are greater than thr Awards.

Question 7

Define occurrence

Answer 7

An accident including a continuous repeated exposure to the same harmful conditions

Question 8

Define trigger

Answer 8

The occurrence that caused the claim to arise

Question 9

When would An Occurrence based trigger apply to a claim

Answer 9

These policies only respond if the claim occurred during the policy term. If lost occurred prior, claim on the prior policy

Question 10

When would a claims-made trigger payout

Answer 10

It doesn’t matter when the loss occurred it only matters when it’s claimed. The claim must occur during the policy term.

Question 11

True or false the aggregate limit will remain the same regardless of how many claims wrote the policy

Answer 11

False

It is the max payable with in a policy term it gets smaller each time you claim within the term.

Question 12

What are the five duties of the insured in the event of a loss

Answer 12

1. Report any occurrences that might lead to a claim even if not covered
2. Forward legal documents ASAP
3. Authorize insurer to get info
   4, Assist
4. No voluntary payments or assume liability without consent

Question 13

Give 5 examples of supplementary payments

Answer 13

1. Defence costs
2. expenses incurred by insured in an assistance,
3. court costs,
4. bonds to release attachments,
5. interest payable on Judgement amount

Question 14

What is the three types of liability coverage provided in Section 1 coverage A?

Answer 14

1. Tort liability
2. Some contractual liability
3. Statutory liability

Question 15

What does section 1 coverage A insurer

Answer 15

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

Question 16

What does contingent employers liability insurance cover

Answer 16

Employers that are liable for employee claims if there’s no WCB or if WCB denies coverage.

Question 17

What are three vehicle related liability examples that would be covered

Answer 17

1. Defective vehicle or improper maintenance of vehicle leased out
2. Use of attached equipment example wood chipper
3. Benefits denied by WCB if paid as required

Question 18

Under section 1 coverage B personal and advertising injury, name 5 examples of coverage

Answer 18

Personal and advertising injury.

1. False arrest detention or imprisonment example wrongfully detained alleged shoplifter
2. Malicious prosecution
3. Wrongful entry or eviction
4. Defamation
5. Violation of privacy

Question 19

Define personal injury under coverage B personal and advertising

Answer 19

Damage to character or reputation. Slander is spoken. Libel is written

Question 20

What is Section 1 coverage C

Answer 20

Medical payments. Covers minor medical expenses due to premise or operations.

Question 21

What is Section 1 coverage D?

Answer 21

Tenants legal liability. Can be legally responsible for damage to rented property.

Question 22

Name 6 common exclusions for Section 1 A-D

Answer 22

1. Asbestos
2. fungi spores
3. nuclear energy,
4. pollution,
5. terrorism,
6. war risks

Question 23

You have purchased pollution Liability policy. Name 4 items that work be covered by this extension

Answer 23

1. Losses from interior HVAC
2. Losses from contractors operations if insured
3. Hostile fire
4. Lost related to clean up or assessment of pollutants

Question 24

What is section 2 of a commercial general liability

Answer 24

Definitions of the insured

Question 25

Provide some examples of other insured parties under Section 2 of CGL

Answer 25

Owners, Partners, spouses, Partnerships, trust trustee, employees or volunteers, real estate manager IE condo Corp property manager

Question 26

What does section 3 under the commercial general liability section cover

Answer 26

Limits of insurance

Aggregate and per occurrence limit

Question 27

Name 4 types of policies that offer a claims-made bases:

Answer 27

1. Brokers E&O
2. Directors & officers
3. Architects and engineers
4. Medical practitioner commercial equipment impairment liability

Question 28

What makes up an aggregate limit?

Answer 28

Covers all payments made in section A through C. Section D has its own limit

Question 29

Define cross liability

Answer 29

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

Question 30

True or false

Commercial general liability always covers the property of others

Answer 30

False.

Property is never covered by CGL

Question 31

What does a Bailey legal liability policy cover?

Answer 31

Losses to third party property caused by negligence only.

Question 32

What does the Bailey customers floater cover?

Answer 32

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.

Question 33

Give an example of when completed operations coverage would be used

Answer 33

If work is defective, person doing work can be sued for damages.
Example deck collapses injuring someone the deck builder can be sued.

Question 34

What types of legal action can be taken against Directors & officers liability

Answer 34

Company lawsuits
Shareholder suit
Securities suits
Regulatory action

Question 35

Name three duties as per common law and corporate law statute for Directors & officers

Answer 35

1. Duty of care for corporations, shareholders and stakeholders
2. Duty to disclose conflicts of interest
3. Delegation of Duties do not remove liability even if done with due diligence

Question 36

What are three statutory duties of Directors & officers

Answer 36

1. Employee legislation example paying wages, pensions, hiring / firing
2. Tax legislation
3. Organization specific statues example Environmental Protection Act

Question 37

what does the employers liability endorsement remove?

Answer 37

It removes the CGL exclusion for employee bodily injury and property damage during work

Question 38

What does the environmental impairment liability policy cover?

Answer 38

Covers liability and cleanup of sudden or gradual pollution.

Question 39

What does products liability protect the business from?

Answer 39

Liability for claims from defects/ malfunction of a product.
Manufacturing flaws
Design defect
Defective warnings or instructions