Liability Basics
A civil wrong, other than a breach of contract, committed by one party against another party.
What is a tort?
This defense can be used when the plaintiff knowingly and voluntarily exposed himself/herself to a known danger.
What is assumption of risk?
Any one of these exclusions shouldn't be a major concern because coverage can typically be found elsewhere in the insured's program?
What is damage to property, liquor liability, workers compensation, auto?
These are the two basic types of damage covered in a CGL policy?
What are bodily injury and property damage?
This coverage pays regardless of fault.
What is medical payments?
This must exist between the party who allegedly commits the harm and the party who claims to be harmed.
What is legal duty/standard of care?
When a person or organization adds in any way to his/her own injury and is barred from recovery.
What is contributory negligence?
This exclusion eliminates coverage for loss of use of computer hardware that doesn't function correctly because of damage to or destruction of this.
What is electronic data?
Property damage not only means the physical injury to tangible property, but also includes this?
What is loss of use?
These types of insureds will be provided coverage typically when added by endorsement and named in a suit due to their relationship with the named insured.
What is an additional insured?
Assuming a legal duty exists, this must occur for negligence to be established?
What is a breach of duty?
In this defense, the insured may only have to pay a proportional amount of the damages based upon their degree of fault.
What is comparative negligence?
This exclusion has an exception for bodily injury arising from the use of reasonable force to protect persons or property.
What is expected or intended injury?
The United States, Puerto Rico, and Canada
What is the coverage territory?
In a claims made policy, this date defines the extent of coverage for an occurrence or offense that takes place prior to the policy period?
What is the retro active date?
An unbroken chain of events leading to the damages.
What is proximate cause?
This type of legislation limits the time in which a legal action can be brought.
What is the statute of limitations?
This exclusion is particularly important to understand for contractors.
What is damage to your work?
The GL carrier is only going to pay a claim if this insured is found to be this.
What is legally liable or negligent?
When an insured terminates a claims made policy they often must purchase this endorsement to avoid a potential coverage gap.
What is tail coverage or an extended reporting period?
This is the 4th and final element of negligence.
What are damages?
in some situations, the person or organization that is initially considered to be negligent is not truly at fault because of this
Coverage will not apply to damage to this type of property, or to property that has not been physically injured.
What is impaired property?
Some studies indicated 38% of total CGL premium dollars go to these claims expenses.
What are defense costs?
This part of the CGL policy would cover liber or slander allegations.
What is personal and advertising injury?