Term
| Major general liability loss exposures of business firms (5) |
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Definition
Premises & Operations
products liability
completed operations
contractual liability
contingent liability |
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Term
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Definition
Firms must keep premises in safe condition and are responsible for their employees' actions
Liable for operations on and off premises also |
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Term
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Definition
| legal liablity of manufacturers to people who are injured or property that's damaged from defective products |
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Term
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Definition
liability from faulty work performed away from premises after work or operation is completed
example: Contractors who incorrectly install a hot water heater that later explodes |
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Term
| Products-completed operations hazard |
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Definition
combines products liability and completed operations coverages
covers liability losses that occur away from the premises because the insured's product or work AFTER the insured gives up possession of the product OR finishes the work done |
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Term
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Definition
the business firm agrees (by contract) to assume the legal liability of another party
example: the owner of a manufacturing company rents a building and signs a contract with the company saying he's not liable for damages to the building (the manufacturing company assumes the owner's legal liability) |
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Term
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Definition
liability from work done by independent contractors if
1. the activity is illegal
2. the type of work doesn't permit delegation of authority
3. the work done by the independent contractor is inherently dangerous |
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Term
| Other General liability loss exposures (8) |
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Definition
Environmental pollution
Fire legal liability (If a firm rents property and negligently causes a fire, the firm is liable)
Liquor liability (AKA Dramshop law; places that sell liquor can be liable for injuries caused by drunk customers)
Directors & officers liability (covers legal liability from D&O's mismanagement)
Personal & advertising injury (covers liability from false arrests, libel & slander, etc)
Property in the insured's care, custody or control
Sexual Harassment
Employment practices (discrimination, failure to hire/promote, etc) |
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Term
| Commercial General Liability Policy (CGL) |
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Definition
| covers general liability loss exposures |
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Term
| Two coverage forms in Commercial General Liabilty (CGL) Policy |
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Definition
| Occurrence form & claims-made form |
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Term
| Coverages of the Commercial General Liability (CGL) Policy (4) |
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Definition
Bodily Injury & Property Damage Liability
Personal & Advertising Injury Liability
Medical Payments
Certain Supplementary Payments |
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Term
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Definition
| an accident, including continuous or repeated exposure to substantially the same general harmful conditions |
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Term
| Exclusions to Coverage A: Bodily Injury and Property Damage |
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Definition
Expected or Intended Injury
Contractual Liability
Liquor Liability
Workers Compensation
Employers Liability
Pollution Exclusion
Aircraft, auto, and watercraft exclusion
Mobile Equipment
War
Damage to Property
Property Damage to Insured's product
Property Damage to the Insured's work
Property damage to impaired property
Recall of products
Personal & Advertising Injury |
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Term
| Coverage C of CGL: Medical Payments |
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Definition
| covers medical expenses (incurred within one year of accident) of people injured in an accident on the premises or on ways next to the premises, or as a result of the insured's operations; paid regardless of liability |
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Term
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Definition
| max amount that the insurer will pay for the sum of Coverage A damages (except bodily injury and property damage included in "products-completed operations hazard"), Coverage B damages and Coverage C medical expenses |
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Term
| Products-completed operations aggregate limit |
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Definition
| max amount that the insurer will pay under Coverage A because of bodily injury and property damage in "Products-completed operations hazard" |
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Term
| Personal & advertising injury limit |
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Definition
| max amount that the insurer will pay under Coverage B for personal injury and advertising injury |
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Term
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Definition
| max amount that the insurer will pay for the sum of all damages under Coverage A and C out of any ONE occurrence |
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Term
| Damage to rented premises limit |
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Definition
| max amount the insurer will pay under Coverage A for property damage to rented premises from a single fire |
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Term
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Definition
| max amount that the insurer will pay under medical expenses b/c of a bodily injury sustained by any ONE person |
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Term
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Definition
| covers claims that are first reported during policy period and that occurred after the retroactive date stated in the policy |
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Term
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Definition
| covers claims from occurrences that happen during policy period, regardless of when the claim is made |
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Term
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Definition
| problem with occurrence policy; small claims that are reported years after a policy was first written and must be paid for |
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Term
| basic extended reporting period |
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Definition
| extends reporting period for claims; provides coverage under an expired claims-made policy for claims first reported after the policy expires |
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Term
| employment-related practices liability coverage form |
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Definition
| covers loss exposures that employers face from their employees (failure to hire, failure to promote, sexual harassment, etc) |
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Term
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Definition
| total sum the insured is legally obligated to pay |
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