General Liability - Glossary of Terms

Vocabulary flashcards covering commercial general liability (CGL) terms, policy triggers, endorsements, forms, and coverage components based on the lecture glossary.

CG0001

Occurrence Form.

CG0002

CM (Claims-Made) Form.

CGL Officer Max

$\$16,700$.

GL Exposure Rating Basis

Payroll, Sales, Units, Area; applies per $1,000$.

ISO

Insurance Services Office -An organization that collects statistical data, promulgates rating information, develops standard policy forms, and files information with state regulators on behalf of insurance companies that purchase its services.

CG2037

Additional Insured (AI) Status for Completed Operations.

CG2010

Additional Insured (AI) Status for Premises & Ongoing Operations.

CG2024

Waiver of Subrogation — an agreement between parties in which one party agrees to waive right of recovery against another party in the event of a loss.

Per Project Aggregate

Modifies a general liability insurance policy to provide that the general aggregate limit applies separately to designated construction projects.

Overtime Pay Credit (vs Straight Time)

$\frac{1}{3}$ deductible/OT portion of pay.

UCT-6

Florida Quarterly Unemployment Form.

IRS 941

Employer's Federal Tax Return Form.

Primary and Non-Contributory

Insured's policy must pay before other applicable policies (primary) and without seeking contribution from other policies that also claim to be primary (noncontributory).

Wrap Up

OCIP/CCIP/DCIP.

Governing Class

Classification with the highest payroll (or sometimes rate in a contracting classification).

Addt’l Insured

Status providing rights to an organization not automatically included within the definition of an insured under an insurance policy.

Coverage Trigger

The event that must occur before a particular liability policy applies to a given loss; serves to determine which liability policy in a series of policies covers a particular loss.

Occurrence Trigger

The occurrence of injury or damage is the trigger; liability will be covered under the policy in-force at the time the injury or damage occurred.

Claims Made Trigger

Coverage is triggered by making or reporting an injury or damage; the policy which is in-force at the time the claim is made or reported is the policy which will respond.

Defense Inside the Limits

A liability policy provision according to which amounts paid by the insurer to defend the insured against a claim or suit reduce the policy's applicable limit of insurance.

Defense Outside the Limits

Defense costs do not erode the limit of liability.

Your Work

Premises operations, ongoing operations, and products and completed operations.

PEO

Professional Employer Organization. Involves employee leasing and a co-employer relationship.

FEIN

Federal Employer Identification Number.

CGL Coverage Territory

United States (including its territories or possessions), Puerto Rico, or Canada.

Contractual Liability

One of the $14$ coverage parts of a CGL policy. Provides coverage for contractual liabilities which would exist in the absence of a written contract and provides coverage for liabilities assumed in a written contract.

Broad Form Property Damage

One of the $14$ coverage parts of a CGL policy; often req'd by written contract. Automatically applies unless otherwise excluded by Damage to Work Performed By Subcontractors on your behalf (CG2294 or CG2295).

Incidental Malpractice

One of the $14$ coverage parts of a CGL policy (Good Samaritan coverage). The liability exposure created by the offering of medical services by a person or entity not engaged primarily in the offering of such services; found in Section II – Who Is An Insured – 2. (d).

Non-Owned Watercraft Liability

One of the $14$ coverage parts of a CGL policy covering watercraft less than $26\,\text{feet}$ in length and not being used to carry persons or property for a charge.

Newly Acquired Organization

One of the $14$ coverage parts of a CGL policy. Provides automatic coverage up to $90\,\text{days}$ for an organization that is formed or newly acquired (excluding partnerships, joint ventures, and limited liability corporations) for acts that occurred after the organization was formed or acquired.

Additional Persons Insured

One of the $14$ coverage parts of a CGL policy. Includes volunteer workers, real estate mgr, and a person or organization w/ temporary custody of your property after you die.

Extended Bodily Injury

One of the $14$ coverage parts of a CGL policy. Broadens bodily injury liability to include coverage for the use of reasonable force to protect persons or property; sometimes requested by written contract/insurance requirements.

Limited Worldwide Coverage

One of the $14$ coverage parts of a CGL policy. Covers international air and water, goods and products made or sold in the territory, the activities of a person whose home is in the territory but is away on business, and personal and advertising injury over the internet.

Med Pay

One of the $14$ coverage parts of a CGL policy (Coverage C). A general liability coverage that reimburses others, without regard to the insured's liability, for medical or funeral expenses incurred by such persons as a result of bodily injury (BI).

PI & AI

One of the $14$ coverage parts of a CGL policy. Personal Injury & Advertising Injury (Coverage B) — protects against claims of slander, libel, false arrest, and even improper eviction.

XCU

One of the $14$ coverage parts of a CGL policy: Explosion, Collapse and Underground. Can only be removed via exclusion (CG2142 or CG2143); commonly required within Insurance Requirements and by written contract.

Prod/Comp Ops

One of the $14$ coverage parts of a CGL policy. Encompasses liability arising out of the insured's products or business operations conducted away from the insured's premises once those operations have been completed or abandoned.

Fire Legal Liability

One of the $14$ coverage parts of a CGL policy. Coverage for a tenant's liability for damage by fire to the rented premises the tenant occupies.

Host Liquor

One of the $14$ coverage parts of a CGL policy. Liability for bodily injury (BI) or property damage (PD) arising out of the serving or distribution of alcoholic beverages by a party not engaged in this activity as a business enterprise.

Min & Deposit

Minimum & Deposit — the minimum premium charged for the term (provisional premium) which is also an advance premium.

AM Best

The industry standard rating bureau.

COI

Certificate of Insurance.

Indemnification Language

Hold Harmless.