Term
| General Liability insurance |
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Definition
| covers business liability hazards that are not covered under more specialized forms of insurance such as automobile, marine, workers compensation and others. |
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Term
| ______________ need protection to cover themselves for liability arisiing from premises, general operations and products manufactured or sold. |
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Definition
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Term
| The primary policy form covering these general business hazards is the _________ ________ __________ policy (CGL). |
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Definition
| Commercial General Liability |
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Term
| These are the following forms of Commercial General Liability (CGL): |
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Definition
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Professional Liability
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Product Liability
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Premises
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Term
| ___________ are expected to have extensive technical knowledge or training in their particular area of expertise. They are also expected to _______ the services for which they were hired, according to the __________ __ _______ in their profession. |
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Definition
| Professionals, perform, standards of conduct |
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Term
| If professional fail to use the _____ ___ ______ expected of them, they can be held responsible in the court of law for any harm they cause to another person or business. |
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Definition
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Term
| When liability is limited to _____ ____ _________, professional liability insurance may be called "______ _____ _______" liability. |
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Definition
| acts of negligence, errors and omissions |
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Term
| Insurance Agents/Adjusters |
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Definition
| Protects an insurance agent or adjuster against claims made against himi/her because of negligent acts, error or omissions on the part of the agent or adjuster. |
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Term
| Physicians, Surgeons, and Dentists |
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Definition
Covers claims allegign malpractice out of:
- Professional acts or omissions
- Acts of person for which the physician, surgeon, or dentist is responsible.
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Term
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Definition
| is the area of law in which manufacturers, distributors, suppliers, retailer, and other who make products available to the public are held responsible for the injuries those products cause. |
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Term
| The most common cause of action in a product liability claim is : |
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Definition
Negiigence- Which can be caused by any of the following:
- Improper product design
- Improper assembly of the product
- Failure to inspect or test the product
- Failure to warn of dangerous characteristics
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Term
| The Status of the Plaintiff |
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Definition
| Under the premises liability law of most jurisdictions it is necessary to determine if the plaintiff was an "invitee", a "licensee" or a "trepasser". The defendant's duty to the plaintiff can vary significantly depending upon how the plaintiff is classified. In the definitions below, "premises" should be read broadly to include land, premises, or places of business. The "possessor" is the person in possession of the premises. |
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Term
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Definition
| is a person who is invited to enter or remain on the premises for a commercial benefit to the possessor of premises, or for a purpose directly or indirectly connected with business dealings with the possessor. An invitation may be either express or implied. (Example: A customer in a department store is an _____, as the department store actively invites the public to come to the premises and to purchase merchandise while on the premises). A premises owner owes the highest duty of care to an _______. |
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Term
| Typically, a _________ has a duty to use ordinary care to warn or otherwise protect an invitee from risks of harm from a condition on the _________'s premises if: |
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Definition
possessor, possessor
- the risk of harm is unreasonable
- the possessor knows or in the exercise of ordinary care should know of the condition, and should realize that it involves an unreasonavble risk or harm to an invitee.
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Term
| The ___________ may have a duty to periodically inspect the premises for the introduction of hazards to invitees. For example, a grocery story may be obligated to periodically check its floor for the presence of spilled or broken merchandise, and to make sure that its products are not likely to fall from its shelves. |
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Definition
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Term
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Definition
| is a person who is invited to enter or remain on the premises for any purpose other than a business or commercial one with the express or implied permission of the owner or person in control of the premises. |
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Term
| A social guest is considered to be a ________, not an _______. |
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Definition
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Term
| Typically, a ________ __ _________ is liable for physical harm caused to a licensee by a condition on the premises if, the plaintiff establishes the following three elements: |
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Definition
possessor of premises;
- The possessor knew or should have known of the condition, should have realized that it involved an unreasonable risk of harm to the licensee, and should have expected that the licensee would not discover or realize the danger.
- The possessor failed to exercise reasonable care to make the condition safe, or to warn the licensee of the conditions and the risk involved
- The licensee did not know or have reason to know of the conditions and the risk involved.
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Term
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Definition
| is a person who goes upon the premises of another without an express or implied invitation, for his or her own purposes, and not in the performance of any duty to the owner. It is typically not necessary for a defendant to establish that the trespasser had unlawful intent in making such an entry. |
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Term
| When premises owners ___ ____ aware of the presence of trespassers, they typically have __ ____ to warn a trespasser of any dangers or to make their premises safe for the benefit of a trespasser. If the premises owner is aware of the presence of trespassers, the premises owner ___ ___ _________ to exercise ordinary care in relation to the safety of a trespasser. |
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Definition
| are not, no duty, may be obligated |
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Term
| Public Roads and Sidewalks |
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Definition
| Premises owners are typically charged with clearing ______ ________ in front of their premises, and to maintain their premises so as not to a danger to members of the public who are passing by on a public street or sidewalk. |
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Term
| Non-Delegability of Duties |
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Definition
| The duties of a premises owner are typically ___ - _________. If the defendant remains in possession, the defendant cannot escape responsibility merely because he contracted with a company to provide maintenance. For example, a business remains liable for the condition of its parking lot, even if it has hired a landscaping company to maintain the parking lot and to remove snow and ice. A landlord remains liable for the condition of the housing it owns, even if it has contracted with a management company to provide all service and maintenance in relation to the housing. |
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Term
| _________ policies cover claims arising from injury or damage occuring while the policyh is in force, regardless of when the claim is first made. |
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Definition
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Term
| _______-____ policies cover claims that arise from injury or damage occuring during the policy period and reported to the insurer during the policy period. Claims arising from events _____ the policy period or claims reported to the insurer outside the policy period are not covered unless special coverage is purchased or arranged with the insurer. |
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Definition
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Term
| This special coverage comes in two forms: |
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Definition
- Prior acts ("nose") coverage
- Run-off ("tail") coverage
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Term
| Prior acts ("nose") coverage |
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Definition
| covers claims that arise from injury or damage occuring before the policy period, but reported to the insurer after the policy period begins. Prior acts coverage is provided by establishing a "retroactive date" covering injury or damage occuring after the retroactive date. The retroactive date usually appears in the declarations page accompanying your policy. It may be the effective date of the policy or an earlier date. Prior acts coverage does not cover claims that were known at the time your policy began. |
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Term
| Run-off ("tail") coverage |
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Definition
| also called extended reporting period, pays for residual claims made after your policy expires. A typical claims-made policy provids a short reporting period of 30-60 days after the policy's expiration date to file claims that arose too late to report before the policy expired. ____ ___ coverage starts when the 30- or 60 day period ends and is provided for an additional premium. The extended reporting period may be one, three, five years, or even unlimited. |
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Term
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Definition
Generally, CGL policies exclude coverage for property damage to your work. There is an exception to the exclusion for damaged work if a subcontractor working for you caused the damage.
Example 1: You own a homebuilding business that recently constructed a new residence with a garage. After the home is sold and the homeowner moves in and parks her vehicle in the garage, the roof on the garage collapses because of faulty construction. The collapsed roof damages the homeowner's vehicle. The policy may provide coverage for the repair or replacement of the vehicle but may not pay to repair the collapsed roof because the roof is your work.
Example 2: The situation is the same as in Example 1, except the work to construct the roof was performed by subcontractors working on your behalf. The policy may cover the damage to the vehicle and also may pay to repair or replace the roof constructed by your subcontractor. |
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Term
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Definition
CGL policies don't cover property damage to your product arising out of the product or any part of the product.
Example: If you install a propane-powered appliance that malfunctions and causes a fire that damages a home, your CGL policy may pay to repair the home. It will not pay to repair or replace the appliance if the malfunction was caused because the appliance was faulty. |
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Term
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Definition
CGL policies exclude coverage for bodily injury or property damage that you are obligated to pay because you assumed liability in a contract or agreement. The exclusion contains the following two exceptions:
- Liability for damages that you would have assumed in the absence of the contract or agreement
- Liability assumed in a contract or agreement defined in the policy as an insured contract, if the bodily injury or property damage occurs after the contract or agreement is executed.
Example 1: You sign a contract to complete the construction of a building within a specified amount of time. The contract requires you to pay damages if you breach the contract. Your CGL policy will not provide coverage for any damages you have to pay because you failed to meet the deadline.
Example 2: You sign a contract to hold harmless and indemnify another party for the other party's negligence if that negligence results in bodily injury or property damage. Your CGL policy may provide coverage to indemnify the other party depending on the wording of the indemnity agreeement. |
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Term
| Recall of Products, Work, or Impaired Property |
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Definition
| CGL policies will not pay the cost to recall faulty products, work, or impaired property. However, this coverage may be added to the policy by endorsement for an additional premium charge. |
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Term
| Workers' Compensation and Employer's Liability |
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Definition
| CGL policies are not intended to provide coverage for workers' compensation or employer's liability. This exclusion prohibits such coverage. |
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Term
| What kind of Insurers Offer CGL Insurance: |
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Definition
- Licensed Insurers
- CGL policies offered by licensed insurers must contain the following legislatively mandated provisions;
- Coverage may not be cancelled by the insurer after 60 days from the effective date of the policy except for the following reasons:
- Fraud in obtaining coverage
- Failure to pay premiums when due
- An increase in hazard within your control that would produce a rate increase.
- Loss of the insurer's reinsurance covering all or part of the risk covered by your policy
- At any time if the insurer is placed in supervision, conservatorship, or receivership and the cancellation or nonrenewal is approved or directed by the supervisor, conservator, or receiver.
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Term
| The insurer must provide at least ___ days notice of nonrenewal and must tell you in _____ why it will not renew your policy. Policyholders obtaining insurance from licensed insurers are protected by the _____ ______ ___ _________ ________ ________ _________ for up to _________ per claim if the insurer become insolvent. |
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Definition
| 60, writing, Texas Property and Casualty Insurance Guaranty Association, $300,000 |
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Term
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Definition
| It is common for _____ ______ ________ to retain a significant portion of the premium in the event the insured cance the policy midterm. Laws regarding notice of cancellation and nonrenewal do not apply to _____ ______ _______. Defense costs could be included with the limit of liability, and prior acts or run-off coverage may not be available. In some cases, a ____ _____ ______ can cancel before a policy's renewal date. |
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Term
| Risk Purchasing Groups are formed under the provisions of the federal _____ ______ ______ ______ (____) of 1986. A _______ ________ consists of individuals or firms of like characteristics who share similar insurance needs. |
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Definition
| Liability Risk Retention Act (LRRA), purchasing group |
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Term
| ____ _________ ________ also are formed under the provisions of the federal Liability Risk Retention Act (____) for the purpose of providing _______. These groups do not buy commercial insurance policies, but "____" the risk within the group. |
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Definition
| Risk Retention Groups, LRRA, insurance, retain |
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Term
| In effect, the members in both groups insure ____ ____ against liability claims and lawsuits. However, because a risk retention group is an _______, it may purchase _______. |
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Definition
| each other, insurer, reinsurance |
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Term
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Definition
| is a form of insurance that insurance companies buy for their own protection. |
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Term
| The Commercial General Liability has several different _____ ______ and ____-_____ that apply to payments made under the coverage. The limit of liability that is shown on the Policy Declarations page is __ ___ the insurer will pay. |
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Definition
| coverage limits, sub-limits, the most |
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Term
| There are two sets of Aggregate Limits: |
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Definition
- Products/ Completed operations
- Premises/ Operations liability
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Term
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Definition
| This is the most that will be paid for the combined totals of Coverage A,B, and C. |
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Term
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Definition
| This is the most that will be paid for the combined totals of damages under Coverage A and C because of bodily injury, property damage and medical payments arising out of any one occurence. |
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Term
| Products Completed Operations Limit |
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Definition
| This represents the most that will be paid under Coverage A because of injury and damage arising out of the products completed operations hazard. |
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Term
| Personal & Advertising Injury Limit |
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Definition
| This is the most that will be paid under Coverage B for the total of all damages due to personal injury or advertising injury sustained by any one person or organization. This limit is also subject to the overall General Aggregate Limit. |
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Term
| Fire Damage Legal Liability Sub-Limit |
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Definition
| This is the most that will be paid under Coverage A for liability cause by fire damage to premises rented to the insured or occupied by the named insured with the owner's permission and arising out of any one fire. The sub-limit is also subject to the Per Occurence Limit and the General Aggregate Limit. |
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Term
| Pollution Liability Coverage Extension Endorsement |
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Definition
| This endorsement overrides the Coverage A exclusion for Bodily Injury and Property Damage claims arising out of pollution losses. |
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Term
| Pollution Liability Coverage Form and the Pollution Liability Limited Coverage |
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Definition
| This endorsement covers certain pollution losses excluded under the standard form. Each covers pollution incidents, which are emissions of pollutants into or on land, the atmosphere or water that cause environmental damage. |
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Term
| The only difference between Pollution Liability Coverage Extension Endorsement and Pollution Liability Coverage Form and the Pollution Liability Limited Coverage is |
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Definition
| that the Pollution Liability Coverage Extension endorsement does not cover clean up costs. |
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Term
| Liquor Liability Coverage Form |
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Definition
| This endorsement covers those policyholders that are in the liquor business. Coverage can be purchased on either a claims made or occurence basis. This endorsement covers liability for contributing to a person's intoxication or for providing liquor in violation of the law for the businesses engaged in the liquor business. |
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Term
| Pollution Exclusions in the CGL Policy |
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Definition
| The pollution exclusion eliminates coverage for injuries or damages to a third party resulting from a pollution event arising from your business operations. The exclusion applies to the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of pollutants. A pollutant is typically defined as any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes materials to be recycled, reconditioned, or reclaimed. |
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Term
| The pollution exclusion included in most general liability policies may contain some of the following exceptions that could provide limited coverage for: |
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Definition
- Injuries sustained within a building and caused by smoke, fumes, or vapors produced by equipment that is used to heat, cool, or dehumidify the building or equipment used to heat water for personal use
- Your products or completed operations
- Injuries or damage arising out of heat, smoke, or fumes from a hostile fire. (Hostile fire is defined as a fire that becomes uncontrollable or breaks out from where it was intended to be)
- Injuries or damage that an insured contractor may be held liable for if the owner of the premises has been added as an additional insured to the contractor's policy
- Injuries or damage arising out of the escape of fuels or lubricants necessary for the operation of mobile equipment.
- Injuries or damage sustained within a building and caused by the release of gases, fumes, or vapors from materials brought into the building in connection with operations performed by you or a contractor or subcontractor working on your behalf.
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Term
| _____ _______ exclusion eliminate all coverage, including coverage for premises/ operations and products/completed operations. ___________ that have a _______ pollution exposure, can choose to include a total pollution exclusion and purchase a separate pollution liability that may provide coverage better suited to the risk and is easier to rate based on the ______ of the business. |
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Definition
| Total pollution, Businesses, significant, nature |
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