Unit 15: Commercial Liability Insurance

Flashcards

Commercial General Liability (CGL) Insurance

Claims of bodily injury, property damage, and personal and advertising injury.

Three Coverage Parts of CGL

Coverage A Bodily Injury and Property Damage, Coverage B Personal and Advertising Injury, Coverage C Medical Payments.

Coverage A in CGL

Covers legal liability for bodily injury and property damage to others caused by the insureds operations.

Coverage B in CGL

Covers non-physical injuries such as libel, slander, copyright infringement.

Coverage C in CGL

Pays for medical expenses of third parties injured on the insured's premises, regardless of fault.

Two CGL Coverage Forms

Occurrence form and claims-made form.

Occurrence Form

Covers losses that occur during the policy period, regardless of when the claim is made.

Claims-Made Form

Covers claims made during the policy period if the event occurred on or after the retroactive date.

Retroactive Date

The earliest date an event may occur and still be covered under a claims-made policy.

Extended Reporting Period (ERP)

Allows claims to be reported after the policy ends for events during the policy period.

Supplemental Extended Reporting Period

An optional endorsement to extend the ERP indefinitely.

General Aggregate Limit

The most the insurer will pay for all claims except those from Products/Completed Ops.

Products-Completed Operations Aggregate Limit

The most the insurer will pay for claims arising from products or completed work.

Personal and Advertising Injury Limit

The most the insurer will pay for all claims arising from a single offense.

Each Occurrence Limit

The maximum amount the insurer will pay for a single occurrence.

Damage to Premises Rented to You Limit

Applies to fire damage caused by the insured to rented premises.

Medical Payments Limit

Maximum the insurer will pay per person for medical expenses.

Insured in a CGL Policy

Named insured, employees, and others depending on business type.

Premises Liability Exposure

Arises from ownership or use of the premises.

Operations Liability Exposure

Arises from the business operations away from premises.

Products Liability

Liability from selling, manufacturing, or distributing products.

Completed Operations Liability

Liability for work completed away from premises.

Common CGL Exclusions

Intentional acts, liquor liability, pollution, aircraft/auto/watercraft.

Contractual Liability

Assumption of liability through a contract (covered in some cases).

Difference Between Aggregate and Occurrence Limits

Aggregate is total for policy period; occurrence is per incident.