Chapter 26 Outline
I. General Liability Loss Exposures A. Premises and Operations 1. Liability because of ownership and maintenance of premises 2. Liability because of operations, either on or off premises B. Products Liability C. Completed Operations 1. Typical insureds: plumbers, electricians, refrigerator and air-conditioning system repairpersons 2. Provides coverage for losses that occur after the work is completed D. Contractual Liability E. Contingent Liability F. Other Liability Exposures 1. Liability arising out of ownership or use of autos, aircraft or watercraft 2. Occupational injury or disease to employees 3. Suits by employees alleging sexual harassment, discrimination, failure to hire or promote, and other employment-related practices 4. Professional liability 5. Directors and officers liability
II.
Commercial General Liability (CGL) Policy A. Overview of the CGL Occurrence Policy B. Section I—Coverages 1. Coverage A—bodily injury and property damage liability 2. Coverage B—personal and advertising injury liability 3. Coverage C—medical payments 4. Supplementary payments—coverages A and B C. Section II—Who Is an Insured? D. Section III—Limits of Insurance E. Section IV—Commercial General Liability Conditions F. Section V—Definitions
III. Overview of CGL Claims-Made Policy A. Meaning of “Claims Made” B. Rationale for Claims-Made Policies (“long-tail” problem) C. Retroactive Date D. Extended Reporting Periods
IV. Employment-Related Practices Liability Insurance A. Insuring Agreement B. Co-payment provision C. Legal Defense D. Exclusions V. Workers Compensation and Employers Liability Insurance A. Part one—workers compensation insurance B. Part two—employers liability insurance C. Part three—other states insurance D. Voluntary Compensation Coverage VI. Commercial Auto Insurance A. Business Auto Coverage Form 1. Liability insurance: nine coverage classifications 2. Physical damage coverage: comprehensive coverage; specified causes-of-loss coverage; collision coverage; and towing and labor costs B. Nonownership Liability Coverage C. Garage Coverage Form—major coverages include: liability coverage; garagekeepers coverage; and physical damage coverage VII. Aircraft Insurance A. Aviation Insurers (written by a relatively small number of aviation pools) B. Aviation Insurance for Private Business and Pleasure Aircraft 1. Physical damage coverage (can be written on an “all-risks” basis; or “all-risks” basis, not in flight; or “all-risks” basis, not in motion) 2. Liability coverage VIII. Commercial Umbrella Policy A. Basic Features 1. Excess liability insurance 2. Required underlying coverages 3. Liability coverages: bodily injury and property damage liability; personal injury and advertising injury 4. Self-insured retention (SIR) for losses not covered by any underlying insurance but is covered by the umbrella policy B. Exclusions IX. Liability Insurance—Businessowners Policy A. Basic Coverages 1. Business Liability coverage 2. Medical expenses coverage B. Amount of Insurance C. Legal Defense Costs
D. Exclusions X. Professional Liability Insurance A. Physicians, Surgeons, and Dentists Professional Liability Insurance 1. There are two insuring agreements. 2. Liability is not restricted to accidental acts of the physician or surgeon. 3. There is a maximum limit per medical incident and an aggregate limit for each coverage. 4. Current forms permit the insurer to settle without the insured’s consent. 5. An extended reporting period can be added. 6. Professional liability insurance is not a substitute for general liability insurance. B. Errors and Omissions Insurance XI. Directors and Officers Liability Insurance A. Insuring Agreement B. Exclusions