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45 Cards in this Set

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TYPES OF GENERAL LIABILITY LOSS EXPOSURES
1) Premises and operations
2) Products liability
3) Completed operations
4) Contractual liability
5) Contingent liability
General Liability Loss Exposures:

PREMISES AND OPERATIONS
legal liability can arise out of ownership and maintenance of premises

invitees require highest degree of care
- must be warned and protected
General Liability Loss Exposures:

PRODUCTS LIABILITY
legal liability of manufacturers, wholesalers, retailers to persons who are injured or incur property damage from defective products

can be sued based on negligence, breach of warranty, strict liability
General Liability Loss Exposures:

COMPLETED OPERATIONS
liability arising out of faulty work performed away from premises after work or operation completed
General Liability Loss Exposures:

PRODUCTS-COMPLETED OPERATIONS HAZARD
covers both products liability and completed operations loss
General Liability Loss Exposures:

CONTRACTUAL LIABILITY
business firm agrees by a written or oral contract to assume legal liability of another party
General Liability Loss Exposures:

CONTINGENT LIABILITY
liability arising out of work done by independent contractors

general rule: firms not legally liable for work done by independent contractors

exceptions: 1)activity is illegal 2)situation does not permit delegation of authority 3)work done is inherently dangerous
General Liability Loss Exposures:

OTHER GENERAL LIABILITY LOSS EXPOSURES
environmental pollution
fire legal liability
liquor liability
directors and officers liability
personal and advertising injury
property in insured's care or control
sexual harassment
employment practices
General Liability Loss Exposures:

LIQUOR LIABILITY LAW/DRAMSHOP LAW
liquor selling establishments can be legally liable for injuries caused by intoxicated customers
General Liability Loss Exposures:

PERSONAL AND ADVERTISING INJURY
false arrest, malicious prosecution, unlawful entry, libel, violation of privacy, using others' ideas, infringement of trade slogan in ads

ex: detaining innocent customer for shoplifting
COMMERCIAL GENERAL LIABILITY POLICY (CGL), two coverage forms
1) occurrence form
2) claimsmade form
CGL Occurence Policy:

5 major sections
Section 1: Coverages
Section 2: Who is an insured?
Section 3: Limits of insurance
Section 4: CGL conditions
Section 5: Definitions
CGL Occurence Policy:
Section 1:

OCCURRENCE
an accident, including continuous exposure to the same general harmful conditions
CGL Occurence Policy:
Section 1:

COVERAGE A
Bodily injury and peroperty damage liability

must be caused by an occurrence during policy period
CGL Occurence Policy:
Section 1:

Defense costs
duty to defend ends when limits paid

defense costs are in addition to policy limits
CGL Occurence Policy:
Section 1:

EXCLUSIONS (part 1)
Expected or intended injury
Contractual liability
Liquor liability
Workers compensation
Employers liability
Pollution exclusion
Aircraft, auto, and watercraft exculsion
CGL Occurence Policy:
Section 1:

EXCLUSIONS (part 2)
Mobile equipment when being transported by insured auto or used for stunt
War
Damage to property
Property damage to insured's product resulting from a defect of product
Property damage to the insured's work included in products completed operations hazard
Property damage to impaired property
Recall of products
Personal and advertising injury
CGL Occurrence Policy:
Section 1:

COVERAGE B
Personal and Advertising Injury Liability
CGL Occurrence Policy:
Section 1:

COVERAGE C
Medical Payments

expenses must be incurred w/in one year of accident and are paid w/o regard to legal liability
CGL Occurrence Policy:
Section 1:

SUPPLEMENTARY PAYMENTS: COVERAGES A AND B
in addition to policy limits

All expenses incurred by insurer
Up to $250 for cost of bail bond
cost of bonds to release attachments
Actual loss of earnings by insured up to $250 a day
Court costs to insured
Prejudgment interest
Interest that accrues after entry of judgment
CGL Occurrence Policy:
Section 2:

WHO IS AN INSURED? (part 1)
* Owner and spouse if sole proprietorship
* Partners, members, and spouses if partnershiop
* Members and mgrs if LLC
* Officers, directors, s/h if corp
* Trust and trustees
CGL Occurrence Policy:
Section 2:

WHO IS AN INSURED? (part 2)
* Volunteer workers
* Employees acting within scope of employment
* Person or org acting as real estage mgr
* Legal rep should insured die
* Drivers of mobile equipment owned by named insured
* Any newly acquired or formed org other than partnership, joint venture, or LLC
CGL Occurrence Policy:
Section 3 Limits of Insurance:

GENERAL AGGREGRATE LIMIT
max amount insurer will pay for sum of
Covg A (excluding property and bodily injury included in products-completed operations hazard)
Covg B
Covg C
CGL Occurrence Policy:
Section 3 Limits of Insurance:

PRODUCTS-COMPLETED OPERATIONS AGGREGATE LIMIT
bodily injury and property damage incljuded in "products-completed operations hazard" in Covg A
CGL Occurrence Policy:
Section 3 Limits of Insurance:

PERSONAL AND ADVERTISING INJURY LIMIT
Covg B limit
CGL Occurrence Policy:
Section 3 Limits of Insurance:

EACH OCCURRENCE LIMIT
sum of all damages under Covg A and Covg C arising out of any one occurrence
CGL Occurrence Policy:
Section 3 Limits of Insurance:

DAMAGE TO RENTED PREMISES
max paid under Covg A for property damage to rented premises from a single fire
CGL Occurrence Policy:
Section 3 Limits of Insurance:

MEDICAL EXPENSES LIMIT
max paid under medical expenses because of a bodily injury sustained by any one person
CLAIMS-MADE POLICY
covers only claims that are first reported during the policy period, provided the event occurred after the retroactive date (if any)
CGL Claims-Made Policy:

LONG-TAIL CLAIMS
small number of claims reported years after poilcy first written
CGL Claims-Made Policy:

RETROACTIVE DATE
a date before inception of policy since which occurrence must occur.
CGL Claims-Made Policy:

EXTENDED REPORTING PERIOD
date after policy expires until which claim can be made. occurrence must still be between retroactive date and policy expiration
CGL Claims-Made Policy:

BASIC EXTENDED REPORTING PERIOD
automatically provided when:
* policy canceled not renewed
* insurer replaces policy w/retroactive date later than original policy
* claims made policy replaced w/occurrence
----
5 year tail (occurrence reported w/in policy period)
60 day tail (occurrence not reported w/in policy period)
Employment-Related Practices Liability Insurance:

INJURY
* refusal to emply, termination, demotion, negative evaluation, humiliation
* coercing to commit an unlawful act
* sexual harassment
* verbal, physical, emotional abuse, discrimination
Employment-Related Practices Liability Insurance:

CO-PAYMENT
requires insured to pay part of the damages and legal defense costs up to some limit
Employment-Related Practices Liability Insurance:

LEGAL DEFENSE COSTS
included in policy limit
Employment-Related Practices Liability Insurance:

EXCLUSIONS
* criminal acts
* contractual liability
* workers comp
* failure to comply with disability act
* violation of employment laws
* strikes
* insured committing sexual harassment
* restructuring
* intentional discrimination
* retaliatory actions
WORKERS COMPENSATION INSURANCE
provides medical care, cash benefits, survivor benefits, rehab services to workers who are injured or die from job related accidents or disease
Workers Compensation Insurance:

LIABILITY W/O FAULT
employer held absolutely liable for work related accidents and disease regardless of fault
Workers Compensation Insurance:

WORKERS COMP AND EMPLOYERS LIABILITY POLICY, 3 PARTS
Part 1: Workers Comp Insurance
Part 2: Employer's liability insurance
Part 3: Other-States Insurance
Workers Compensation and Employers Liability Insurance Policy:

PART ONE: WORKERS COMP INSURANCE
no limits; insurer pays all benefits required by workers comp law the state
Workers Compensation and Employers Liability Insurance Policy:

PART TWO: EMPLOYERS LIABILITY INSURANCE
any injury not covered under workers comp law
Workers Compensation and Employers Liability Insurance Policy:
PART TWO: EMPLOYERS LIABILITY INSURANCE:

3RD PARTY OVER CASES
injured eE sues 3rd party, who in turn sues eR for contributory negligence
Workers Compensation and Employers Liability Insurance Policy:
PART TWO: EMPLOYERS LIABILITY INSURANCE:

EXCULSIONS (part 1)
* Liability assumed contract
* Punitive damages
* Bodily injury to an illegal employee
* Obligations imposed on employer b/c of law
* Intentional injury caused by employer
* Bodily injury outside US or Canada
Workers Compensation and Employers Liability Insurance Policy:
PART TWO: EMPLOYERS LIABILITY INSURANCE

EXCLUSIONS (part 2)
* Bodily injury to any person subject to Longshore and Harbor Workers Comp Act
* Bodily injury to any person subject to Federal employers Liability Act
* Bodily injury to master or crew member of any vessel
* Fines or penalties b/c of violation of law