Unit 15: Commercial Liability Insurance Flashcards
Types of Risk Exposures
- premises - operations
- products - completed operations
- fire legal
- contractual liability
- independent contractors
Premises and Operations
- location and activities
- on and off premise
Products Claim
- away from premise
- exception: spoiled food
Fire Legal Liability
- rentals covered from fire
- tenant held liable
Independent Contractor Liability
owners and contractors protective
Contractual Liability - LEASE
- lease of a premises
- easement agreement
- agreement to indemnify a municipality
- sidetrack agreement with a railroad
- elevator maintenance agreement
Coverage A - Bodily Injury and Property Damage
Must be caused by an occurrence
Coverage A Exclusions pt 1
- intentional injury
- contractual liability (except for LEASE)
- liquor liability
- employee work-related injuries (covered under workers’ compensation)
- pollution liability (bodily injury, property damage, or clean-up costs)
Coverage A Exclusions pt 2
- aircraft, autos, or watercraft liability (except as specified in policy)
- transportation of mobile equipment by auto or the use of mobile equipment in any prearranged racing activity
- owned or rented property in the insured’s care, custody, or control (except for fire legal liability)
- product recall
Exclusions pt 2
- aircraft, autos, or watercraft liability (except as specified in policy)
- transportation of mobile equipment by auto or the use of mobile equipment in any prearranged racing activity
- owned or rented property in the insured’s care, custody, or control (except for fire legal liability)
- product recall
Coverage B - Personal and Advertising Injury
- offenses: libel and slander
- individual or entire business
Coverage B Exclusions
- knowingly inflicting injury that violates the rights of another
- oral or written publication of material that the insured knows is false, but publishes anyway
- materical that was published before the effective date of the policy
- any offense committed by an insured who is involved in the business of advertising, publishing, broadcasting, telecasting, or designing or determining content of websites for others
- infringement of copyright, patent, trademark, trade secret, or other intellectual property rights
Supplementary Payments (BAILED)
- bail bonds to $250 for the cost of
- aid - fist aid expenses
- interest on judgments in appeal
- loss of earning up to @250 per day
- expenses incurred by the insured to assist in the defense of a claim
- defense costs
Coverage C - Medical payments to Others
- without regard to fault
- must be reported within one year of accident
Coverage C Exclusions
- to any insured or to a tenant or employee of the insured
- payable under workers’ compensation or related laws
Occurrence Form
- trigger - injury or damage occurs while policy in force
- claim can be made after expiration
Claims-Made Form
- trigger - claim made and reported during policy
- can’t occur before retroactive date
Retroactive Date Options
- same date
- earlier date
- no date
Extended reporting (ERP)
60 days
Occurrence reported during policy or ERP
- covered up to 5 years after expiration (tail)
- supplemental tail - unlimited time to make a claim
Auto
a vehicle designed to travel on a public road
Mobile Equipment
vehicles designed principally for use off public roads
Insured’s Products
any goods or products, other than real property, that are manufactured, sold, handled, distributed, or disposed of by the insured
Insured’s Work
work or operations performed by or on behalf of the insured
Coverage Territory
USA including its territories and possessions, Puerto Rico, and Canada
Pollutants
irritants or contaminants or waste
Named Insureds
- individuals (sole proprietor) and spouses
- partners and spouses
- corporations and directors/officers
- trusts
Insureds by Definition (not named)
- employees
- named insured’s legal representative
Policy Limits of Coverage
- A - bodily injury/property damage - per occurrence
- B - personal and advertising injury - per person or organization
- C - medical (no fault) - per person
- General aggregate - per policy period (1 year); A, B, C claims combined
- Product and completed operations aggregate
Named Insured Duties
- prompt notice
- cooperate with insurer
- don’t voluntarily assume liability
Other Insurance
- contribution by equal shares
- contribution by limits
Right to Claim Information
- three year claims history
- automatically provided if company cancels or nonrenews
- 30 days
