Unit Fifteen Commercial Liability Insurance Flashcards
What does commercial general liability insurance(CGL) protect?
Businessowners from claims of injury,property damage,and negligence related to business activities.
What risk exposures are covered by liability insurance?
•premises and operations
•products and completed operations
•fire legal
•independent contractors
•contractual liability
What is the premises and operation exposure?
Liability arising out of the business location or the activities of the business on and off premises
What is the products completed operation exposure cover
Away from premises, exceptions, spoiled food
What is fire legal liability?
Rentals are covered from fire and tenants are held liable
What is fire legal liability?
Rentals are covered from fire and tenants are held liable
What is the independent contractor reliability?
Coverage that may be bought as a separate policy that protects the owners and contractors
What is the independent contractor reliability?
Coverage that may be bought as a separate policy that protects the owners and contractors
What is contractual liability? Remember lease
Lease of a premises
Easement agreement
Agreement to indemnify a municipality Sidetrack agreement with a railroad
Elevator maintenance agreement
What are the three CGL forms provided?
•Coverage A
•Coverage B
•Coverage C
What is coverage a?
Bodily injury(BI) and property damage(PD) liability
Under coverage A to be covered the BI or PD must be caused by what?
In occurrence, meaning continuous repeated exposure to the same general harmful conditions
What is coverage b?
Personal and advertising injury liability for an individual or entire business(basically protect against slander in libel)
What is coverage C?
Medical payments without regard to fault and must be reported within one year of the accident
What is the occurrence form triggered by?
Damage or injury that occurs during the policy. Even though a claim may be made after the policy has expired.
How is the claims made form triggered?
When a claim is first made against the insured, regardless of when the loss or injury took place. Occurrence is on or after the retroactive date.
What does the retroactive date provide?
Coverage, even if an occurrence to place prior to the effective date of the policy
Under retroactive date, what three options does the insured have?
• same date
• Earlier date
• no date
What does extended reporting periods (ERPs) provide?
Coverage for claims made after a claims made policies, expiration date
What is a basic extended reporting period?
Either 60 days or five years is available automatically in free of charge under specified conditions
Under the CGL, who is the named insureds
Individuals and spouses
Partner and spouses
Corporations and directors/officers
Trusts
Under the CGL, who is the named insureds
Individuals and spouses
Partner and spouses
Corporations and directors/officers
Trusts
Under the CGL, who is insured by definition (not named)
Employees
Named insureds legal representative
How many different limits are on the CGL’s declarations page
Six
