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The Commercial General Liability Policy provides
the insurance protection needed to pay damages for bodily injury or
property damages for which the insured is 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 is the named insured
and the employees of 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 coverages offered. The main
difference is in the way claims are handled under the two from. 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.
General
Aggregate
The General Aggregate Limit is the most money the insurer
will pay under a certain coverage for all claims occurring during the
policy term.
Premises/Operations
Coverage is provided for damages arising out of ownership
or occupancy of the insured premises when not maintained in a reasonable
manner. This also covers damages arising out of operations performed
by the insured business.
Products/Completed
Operations
Products coverage is provided for damages arising out
of products manufactured, sold, handled or distributed by the insured.
Completed Operations covers damages occurring after operations have
been completed or abandoned, or after an item is installed or built
and released for it's intended purpose.
Medical
Expense Limit
Medical payments coverage pays medical expenses resulting
from bodily injury caused by an accident on premises owned or rented
by the insured, or locations next to such property, or when caused by
the insured's operations. These payments are made without regard to
the liability of the insured.
Fire
Damage Limit
The fire damage limit provides coverage for fire damages caused
by negligence on the part of the insured to premises rented to the named
insured. If a fire occurs because of negligence of the insured and causes
damage to property not rented to the insured, coverage would be provided
under the occurrence limit.
Personal
Injury
Personal Injury means injury other than bodily injury. Coverage
is provided for injury resulting from offenses such as false arrest,
malicious prosecution, detention or imprisonment, the wrongful entry
into, wrongful eviction from and other acts of invasion, or rights of
private occupancy of a room. Coverage for libel and slander is also
provided in the policy.
Advertising
Injury
This coverage pays for damages done in the course of oral or
written advertisement that disparages, libels or slanders a person's
or organization's goods, products or services. Coverage for these offenses
is provided under advertising injury coverage only if they occur during
the course of advertising the named insured's own goods, products or
services.
Each Occurrence
Each occurrence is considered to be an accident, which could
include continuous or repeated exposure to the same harmful conditions.
An occurrence can also be a sudden event, or a result of a long term
series of events.
Claims
Made Form Only
Basic Extended Reporting Period (Basic
Tail)
This coverage is provided automatically without an additional
premium charge if coverage is canceled, not renewed, or the insurer
renews with a later retroactive date. The basic extended reporting period
starts at the end of the policy period and lasts for five years for
claims made against the insured within the five year period and reported
to the insurer within 60 days after the end of the policy period.
Supplemental Extended Reporting Period
(Supplemental Tail)
The supplemental extended reporting period is available under
the same circumstances as the basic one. However, it becomes effective
only if the named insured makes a written request within 60 days after
termination of the policy period and the additional premium is paid.
The supplemental extended reporting begins when the basic one ends,
and it continues forever. It cannot be canceled by the insured or insurer.
The supplemental tail endorsement would provide coverage for claims
reported to the insurer within sixty days after the end of the policy
period but did not result in a claim being made against the insured
until after the end of the five year policy period.
Other types of occurrence or offenses that
are unknown by the insured and therefore not reported within the sixty
days after the end of the policy period could also be covered by the
supplemental tail. When the tail is purchased the policies general aggregate
limit and the products/completed operations aggregate limit is reinstated.
Retroactive Date
The retroactive date shown in the policy declarations is the
same as the inception date, or the retroactive date can be a date prior
to the inception date. A policy can also be written with no retroactive
date.
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This coverage agreement obligates the insurer to pay all compensation and other benefits required of the insured by the workers compensation law or occupational disease law of any state listed in the policy. The coverage applies to bodily injury by accident and by disease.
Coverage (A) shows no dollar limit for the benefits provided since any applicable limits would be those established within the law. Benefits under coverage (A) are paid to the employee without regard to fault.
Employers Liability
This coverage protects employers for their legal liability for bodily injury by accident or disease to an employee arising out of and in the course of the employee's employment when not covered under the worker's compensation law. Before benefits are paid under this coverage, the employee must prove the employer is liable for the injury.
Bodily Injury By Accident
This amount is the most an insurer will pay under coverage (B) for all claims arising from any one accident, regardless of how many employees are involved in the accident. The standard limit is $100,000 for any one accident, which can be increased.
Bodily Injury By Disease (Policy Limit)
This is the aggregate limit the insurer will pay under coverage (B) for all claims sustaining bodily injury by disease during the policy period. The standard policy limit is $500,000, which can be increased.
Bodily Injury By Disease (Each Employee)
This amount is the most an insurer will pay under coverage (B) for damages due to bodily injury by disease to any one employee. THe standard limit of liability for each employee is $100,000, which can be increased.
Other States Insurance
This provides workers compensation coverages if the insured expands operations into other states not declared at the time the policy is issued or renewed. If the insured elects this coverage and operations begin in a state listed under other states, the insurer provides the same coverage as if the state was declared in the policy at the time of policy issuance.
Voluntary Compensation Endorsement
Workers compensation laws of most states exempt some types of employment from workers compensation benefits. This endorsement amends the standard policy to provide coverage for employees with exempted occupations from the workers compensation act. When the endorsement is added it does not make employees subject to the workers compensation law, but it obligates the insurance company to pay on behalf of the insured, an amount equal to the compensation benefits that would be payable to those employees if they were subject to the workers compensation law of that state.
United States Longshore & Harbor Workers Endorsement (USL&HW)
This is a federal act which is similar to the state workers compensation act. The federal act was designed to provide workers compensation benefits to employees who work in maritime employment upon the navigable waters of the United States and who are usually considered outside the scope of state workers compensation laws. When the USL&HWA endorsement is added to the standard policy it applies to work done in the states scheduled on the policy and extends the definition of the workers compensation law to include the USL&HWCA
Executive Officers, Partners Exclusion Endorsement
In some states, workers compensation law allows an insured to include or exclude Executive Officers and Partners, or both, from coverage. Adding this endorsement can designate the individuals not covered under the policy.
Experience Modification
This is a factor that deals with the rating of the policy. The Experience Modifcation figure is based on the insured's loss experience. The factor is used to increase or decrease the manual rates of insurance.
Monopolistic States
There are six states that require all workers compensation insurance to be placed with their state fund. No private insurer is allowed to write Workers Compensation Coverage in the six states. The states are Nevada, North Dakota, Ohio, Washington, Wyoming and West Virginia.
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