Unit 15 Commercial Liability Insurance Flashcards
Premises & Operations
Most common among the many business risk exposures of a business is the premises and operations exposure — liability arising out of the business location or the activities of a business.
Products-completed operations exposure
A business may also be exposed to liability by defects in its products or completed operations.
Example: claim against Hooks bakery for injury resulting from the sale of spoiled cream puffs and a claim against magic carpets for injury that results when a customer steps on a carpet rack left behind by Magic’s workers.
Contractual liability
A business may sign a contract with another party agreeing to be liable for some action.
Coverage A- bodily injury & property damage liability
Pays the sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which the insurance applies. To be covered the BI or PD must be caused by an occurrence.
Coverage B
Provides personal and advertising injury liability coverage which covers liability arising out of such offenses such a libel, slander, or advertisements.
Can be individual or entire business.
Coverage C- medical payments
Pays for medical expenses incurred for bodily injury caused by an accident on the premises the insured owns or rents, or arising from the insureds operations. Must be reported within one year of accident.
Occurrence form
Triggered by damage or injury that occurs during the policy period, even though a claim may be made after the policy has expired.
Basic extended reporting period
Of either 60 days or five years is available automatically and free of charge under specified conditions
Supplemental extended reporting period endorsement
Provides and unlimited extension of the reporting period, although the event causing the claim must still occur between the retroactive date and the policy expiration date.
