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									Commercial General Liability Policy
           Part Two
                   Exclusions
•   a. Intended injury      k. Damage to your product
•   b. Contractual
•   c. Liquor Liability     l. Damage to your work
•   d. Work Comp.
•   e. Employers Liab.      m. Impaired property
•   f. Pollution
•   g. Auto,Plane,Boat      n. Product recall
•   h. Mobile equip.
•   i. War                  o. Personal & advertising
•   J. damage to property      injury
Aircraft, Auto or Watercraft Exclusion
 • “Auto” means…                      1.
   1. Land motor vehicle,trailer,simi
   2. Used on public roads
   3. Including any attached machinery
   4. But not “mobile equipment”

 • Intended to avoid duplication with auto,
   aircraft or watercraft insurance
Mobile Equipment…


 • Damage caused by mobile equipment is
   covered, except when…
      1. In transit by an “auto” –
   (auto policy covers that)

     2. Racing, speed, demolition,stunting
War Exclusion
 • Bodily injury or property damge due to
   war including…
 •     Declared War
       Civil War
       Insurrection
       Rebellion
       Revolution
 Note: Only applies to contractual liability
Damage to Property Exclusion
 • Will not pay for…
   1. Your own property
   2. Premises sold, given,abandoned
   3. Property loaned to you
   4. In your care, custody or control
   5. Property being worked on
   6. Faulty work
 Products & Completed Operations
• Products            • Completed Ops.

  * “Your Product”       * “Your Work”

   * Away from your      * Away from your
  premises             premises

   * Not in your         * After completion
  possession           or abandonment
     Damage to “Your Product”
• “your product”, arising out of it or any
  part of it…

• Prevents payment for products
  incorrectly designed or defectively
  produced

• Does not eliminate coverage for
  resulting BI or PD
      Damage to “Your Work”
• “Your Work” arising out of it or any part
  of it…
• Prevents repairing,redoing or replacing
  faulty work
• Covers resulting damage (BI & PD)
• Exclusion does not apply to work
  performed by a subcontractor
    Impaired Property Exclusion
• Prevents coverage for loss of use of
  undamaged property solely because
  “your product or work” was defective
• ..if said property can be restored to use
  by repairing or replacing your product /
  work
• Exclusion does not apply if there was a
  “sudden or accidental” injury to your
  product / work after being in service
           Recall Exclusion
• Prevents payment of the cost of
  recalling inspecting, repairing or
  adjusting “your product” if it is defective

• Applies to both:
   Voluntary recall
   Government ordered recall
“Claims Made Concepts” – Chapter 5
• Avoids insurance company paying for
  “Long Tail” claims.

• Form number CG DS 02 10 01

• Everything is same as CG DS 01 but the
  “coverage trigger” …(what causes or
  “triggers” the policy to respond)
        Coverage “Triggers”
• Occurrence Form (01)…Becomes
  obligated to pay based upon when the
  injury or damage occurred.

• Claims Made Form (02)..Becomes
  obligated to pay based upon when a
  claim for the injury or damage was first
  made
Claims Made Coverage Applies…
 • Only to the policy that was in effect when the
   claim was first made, so long as…

    1. The claim was actually made during that
   policy period (not before or after)

    2. The injury or damage occurred
   subsequent to (after) the “retroactive date”
           Retroactive Dates
• The policy may contain a retroactive date that
  is…
    1. The same as the start date (inception
  date) of the policy
    2. A date that precedes the inception date
  of the policy
                   or
    3. No retroactive date at all
  Extending the Reporting Period
• Done when…
    1. You are discontinuing insurance entirely
  (ex. selling your business)
    2. You are converting back to an Occurrence
  Form
  Otherwise, there will be no coverage for
  incidents that take place during the Claims
  Made period but don’t get made known to the
  insured until after the end of the Claims Made
  policy
Basic Extended Reporting Period
 1. Applies automatically without
additional charge

  2. Gives you 60 days after the end of
the policy to report incidents that might
become claims

  3. Gives you 5 years for those
“incidents” to actually become claims
Supplemental Extended Reporting Pd.
 1. Must be requested in writing within
   60 days after the end of the policy

 2. Can cost up to 200% of the original
   policy premium

 3. Gives you an unlimited time to report
   incidents or claims

								
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