Unit Fifteen Commercial Liability Insurance

Question 1

What does commercial general liability insurance(CGL) protect?

Answer 1

Businessowners from claims of injury,property damage,and negligence related to business activities.

Question 2

What risk exposures are covered by liability insurance?

Answer 2

•premises and operations
•products and completed operations
•fire legal
•independent contractors
•contractual liability

Question 3

What is the premises and operation exposure?

Answer 3

Liability arising out of the business location or the activities of the business on and off premises

Question 4

What is the products completed operation exposure cover

Answer 4

Away from premises, exceptions, spoiled food

Question 5

What is fire legal liability?

Answer 5

Rentals are covered from fire and tenants are held liable

Question 6

What is fire legal liability?

Answer 6

Rentals are covered from fire and tenants are held liable

Question 7

What is the independent contractor reliability?

Answer 7

Coverage that may be bought as a separate policy that protects the owners and contractors

Question 8

What is the independent contractor reliability?

Answer 8

Coverage that may be bought as a separate policy that protects the owners and contractors

Question 9

What is contractual liability? Remember lease

Answer 9

Lease of a premises
Easement agreement
Agreement to indemnify a municipality Sidetrack agreement with a railroad
Elevator maintenance agreement

Question 10

What are the three CGL forms provided?

Answer 10

•Coverage A
•Coverage B
•Coverage C

Question 11

What is coverage a?

Answer 11

Bodily injury(BI) and property damage(PD) liability

Question 12

Under coverage A to be covered the BI or PD must be caused by what?

Answer 12

In occurrence, meaning continuous repeated exposure to the same general harmful conditions

Question 13

What is coverage b?

Answer 13

Personal and advertising injury liability for an individual or entire business(basically protect against slander in libel)

Question 14

What is coverage C?

Answer 14

Medical payments without regard to fault and must be reported within one year of the accident

Question 15

What is the occurrence form triggered by?

Answer 15

Damage or injury that occurs during the policy. Even though a claim may be made after the policy has expired.

Question 16

How is the claims made form triggered?

Answer 16

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.

Question 17

What does the retroactive date provide?

Answer 17

Coverage, even if an occurrence to place prior to the effective date of the policy

Question 18

Under retroactive date, what three options does the insured have?

Answer 18

• same date
• Earlier date
• no date

Question 19

What does extended reporting periods (ERPs) provide?

Answer 19

Coverage for claims made after a claims made policies, expiration date

Question 20

What is a basic extended reporting period?

Answer 20

Either 60 days or five years is available automatically in free of charge under specified conditions

Question 21

Under the CGL, who is the named insureds

Answer 21

Individuals and spouses
Partner and spouses
Corporations and directors/officers
Trusts

Question 22

Under the CGL, who is the named insureds

Answer 22

Individuals and spouses
Partner and spouses
Corporations and directors/officers
Trusts

Question 23

Under the CGL, who is insured by definition (not named)

Answer 23

Employees
Named insureds legal representative

Question 24

How many different limits are on the CGL’s declarations page

Answer 24

Six

Question 25

What is coverage A?

Answer 25

Bodily injury/property damage - per occurrence

Question 26

What is coverage b?

Answer 26

Personal injury and advertising injury-per person or organization

Question 27

What is coverage c?

Answer 27

Medical(no fault) - per person

Question 28

What is General Aggregate?

Answer 28

Per policy (1 year) on coverage A,B, and C claims combined

Question 29

What is the named Insured duties?

Answer 29

•prompt notice
•cooperate with insurer
•don’t voluntarily assume liability