| Commercial General Liability
Insurance |
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A
Commercial General Liability Policy provides insurance protection needed to pay
damages for bodily injury or property damages for which the insured in legally
responsible. The policy provides coverage for liability arising from personal
injury and advertising injury. Coverage for medical expense is also provided.
The policy also covers accidents occurring on the premises or away from the
premises. Coverage is provided for injury or damages arising out of goods or
products made or sold by the named insured. The insured its employees are the
named insured. However, several individuals and organizations, other than the
named insured, may be covered, depending upon certain circumstances specified in
the policy. In addition to the limits, the policy provides supplemental payments
for attorney fees, court costs and other expenses associated with a claim or the
defense of a liability suit.
There
are two commercial general liability coverage forms available the occurrence
form and the claims-made form. Both forms are somewhat identical in the coverage
offered. The main difference is in the way claims are handled under the two
forms. The occurrence form covers bodily injury or property damage claims that
occur during the policy term, regardless of when the claim is reported. The
claims-made policy form only covers claims made against the insured during the
policy term. A claim made after the policy expires is not covered by a
claims-made policy unless the claim is covered by an extended reporting period.
The claims-made policy will only have the extended reporting period. The
following terms reflect both forms.
Premises and Operations Liability
Provides
coverage for damage caused by accidents or occurrences arising from the
condition, maintenance or up-keep of the insured's premises and from the
insured's business operations. Most basic business liability policies provide
this coverage.
Products Liability
Coverage
of a manufacturer's or seller's liability for losses or injuries to a buyer,
user or bystander caused by a defect or malfunction of the product. When it is
part of a commercial general liability policy, the coverage is often called
products-completed operations insurance.
Personal & Advertising Injury Liability
Provides
Coverage Part B of the Insurance Services Office commercial general liability
policy, which combines both personal injury and advertising injury into a single
insuring agreement and limit of liability.
Business
Owners Policy (BOP)
Combines property,
liability and business interruption insurance into a single policy. It is
normally written to cover expenses of small and medium size business's where the
following occurs:
Pollution Liability
Provides coverage for liability resulting from pollution that fills the
gap created by the pollution exclusion in the commercial general liability
policy. It provides coverage for third-party injury, property damage and
cleanup for pollution caused by the failure of the insured's products, such as
valves, hoses, pipes and tanks.
Medical Expense Liability
Provides coverage that pays the applicable medical costs if someone is
injured and needs medical treatment due to an accident on your premises.
Excess / Umbrella Liability
Is
coverage that is written in excess of primary insurance. It is designed to
increase the limits of liability, thereby providing catastrophe coverage. Excess
liability coverage does not respond to a loss until the amount of the loss
exceeds (or exhausts) any existing primary policy limits. Example: A primary
$500,000 liability policy is written, and excess insurance is written for $2
million excess of the primary. The primary policy would pay all losses within
$500,000 and the excess policy would pay losses in excess of the primary
coverage, up to the excess policy limit of $2 million.
Liquor Liability
Is
special liability coverage for insured’s who are in the business of manufacturing,
distributing, selling, or serving alcoholic beverages. For these insured’s,
liability can arise from such circumstances as contributing to the intoxication
of an individual; furnishing alcoholic beverages to an underage person; or
violating any statute, ordinance or regulation relating to the sale, gift,
distribution or use of alcoholic beverages.
Crime Coverage
Is
a package of policies that protect an organization against intentional theft by
insiders, as well as theft of assets by third parties. Crime coverage generally
includes a fidelity bond plus a basic menu of other coverage’s.
Employee Benefits Liability
Provides coverage for errors and omissions in the administration of the
insured's employee benefits
Automobile Liability
Provides coverage for commercially owned vehicles, trucks and private
passenger vehicles.
Garage Liability
Provides
coverage for garage operations, automobile operations, physical damage coverage
on garage owned autos and coverage on customers cars, auto and provides premises
medical payments coverage.
Garage Keepers Liability
Covers
the insured's liability for loss to a covered auto or auto equipment left in the
insured's care while the insured is attending, servicing, repairing, parking or
storing the auto in the garage operation.
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