Objective 1
What Coverage Is for Personal and Advertising Injury Liability?
Coverage B
An _______ is an accident or event that leads to a claim being filed
Occurence
What does Coverage B consists of?
an insuring agreement and several exclusions.
For any accident to be covered it must occur in the CGL policy's _____ _____ and during the ____ _____
Coverage territory and the policy period
The Commercial General Liability (CGL) Coverage B—Personal and Advertising Injury Liability provides coverage for which one of the following?
A. Contractual liability
B. False arrest
C. Knowing violation of rights of another
D. Criminal acts
B. False arrest
The definition of personal and advertising injury in the CGL policy includes liability arising from false arrest.
What are losses that happen during the policy period that trigger coverage?
Occurrence Coverage Trigger
What is the first condition in CGL Coverage A?
Is whether the insured is legally liable for the damages
For personal and advertising injury offenses that take place through the internet or similar electronic means of communication, the coverage territory is ______.
Worldwide—though some of the policy’s exclusions may negate coverage in certain situations
The coverage also applies to accidents that occur away from the insured’s premises and adjacent thoroughfares, but only if?
the accident results from the named insured’s operations.
The Commercial General Liability (CGL) Coverage Form defines the term "occurrence" as
A. An incident, sudden and accidental in nature, causing bodily injury or property damage.
B. An accident, including continuous or repeated exposure to substantially the same general harmful conditions.
C. An accident, causing bodily injury or property damage, that occurs suddenly.
D. An incident resulting from repeated exposure to substantially the same general harmful conditions.
B. An accident, including continuous or repeated exposure to substantially the same general harmful conditions.
What does a commercial general liability coverage form protect?
A commercial general liability coverage form protects an organization against financial losses stemming from liability for damages to people or property
What is considered bodily injury under a CGL?
Bodily injury is any physical injury to a person, including sickness, disease, and death.
Several exclusions in Coverage B of the CGL protect the insurer from having to pay damages for intentional acts. These exclusions cover a range of topics, such as? (Hint; there are 3)
-knowingly violating the rights of another person
-knowingly publishing false materials
-breaching a contract
Medical expenses must be reported within what time frame after the date of the accident?
Joe’s Cleaning Service is having a very good year, with close to a 30 percent increase in sales. Joe is wondering if this growth will affect his general liability premium at the end of the policy period. Which one of the following sections of the general liability coverage form will provide this information?
A. Limits of Insurance
B. Declarations Form
C. Extended Reporting Period
D. Endorsements
B. Declarations Form
The CGL declarations form will include rating and premium auditing information.
Who else can be considered as an insured under a CGL coverage form? (name 3)
-Spouses of individual named insureds
-Employees
-volunteer workers of the named insured
-The named insured's real estate manager or legal representative
-Organizations newly acquired by the named insured
One of the conditions state that the damages must occur in the policy's _____ ______
Coverage Territory
The CGL Coverage B insuring agreement states that the insurer will pay any damages assessed against the insured for several specific offenses, such as:
1. False imprisonment
2. Malicious prosecution
3. Wrongful eviction
4. Libel
5. Slander
6. Infringement of copyright
The coverage applies to accidents that occur on premises owned or rented by the insured, as well as? (name 3)
-Roads
-Streets
-Paths
-Passages adjacent to such premises
Chuckie's chicken distributor researches the benefits of consuming chicken versus consuming beef. In November 2011, Chuckie's publishes a brochure outlining the potential health hazards of consuming beef and explaining why chicken is a healthier alternative. Chuckie continues to publish and distribute the same brochure for six months. In March 2012, several beef distributors file a suit against Chuckie's for personal and advertising injury. Which one of the following exclusions would apply to this claim under Coverage B of Chuckie's Commercial General Liability Coverage Form (CGL) with a policy period of January 2012 - January 2013?
A. Knowing violation of rights of another
B. Material published with knowledge of falsity
C. Unauthorized use of another's name or product
D. Material published prior to the policy period
D. Material published prior to the policy period
Under Coverage B, the exclusion to material published prior to the policy period applies.
What is shown on the Declaration forms? (Name 5)
-Names of insured and provider
-The name and mailing address of the named insured
-The Policy inception and expiration dates
-A condition stating that in exchange for a payment of a premium, the insurer will provide the agreed upon coverage described in the policy
-The limits of insurance
-Description of the named insureds business
-Rating and premium auditing information
-A list of endorsements attached to the policy
What are some Coverage A conditions? (Name 4)
1. The insured must be legally obligated to pay damages
2. The claim must result from bodily injury or property damage
3. The policy must apply to the damage identified in the claim
4. It must have been caused by an occurrence that was a covered cause of loss
5. Damages must occur within the policy's coverage territory
6. Damages must occur within the period of time for which the policy was in effect
7. The damages at the root of the claim being made cannot have been known to the insured before the policy went into effect
For the purposes of the CGL form, “injury” can also include? (name 3)
(Hint; mental)
-mental anguish
-mental injury
-fright
-shock
-humiliation
-loss of reputation.
The CGL policy’s medical payments coverage also excludes coverage for bodily injury to these categories of people: (Name 3)
1. Any insured (other than a volunteer worker of the named insured)
2. Anyone hired to do work for an insured or for a tenant of an insured
3. A person injured on that part of the named insured’s premises that the person normally occupies
4. A person entitled to workers compensation benefits for the injury
5. A person injured while taking part in any physical exercises, games, sports, or athletic contests
Dan owns a bike repair shop which is located on the first floor of a 3 story building owned by Jane. Jane uses the third floor for her own business and rents out the second floor to a graphic design studio.
While doing some bike repair work, Dan accidentally started a fire which spread throughout the entire building. The damage from the fire consisted of : i) damage to Dan's business personal property - $250,000; ii) damage to the bike repair shop building rented to Dan - $125,000; iii) damage to the remainder of the building - $200,000; and iv) bodily injury to a customer of the graphic design studio on the 2nd floor - $300,000.
Dan's bike repair shop is insured by a Commercial General Liability policy (occurrence version) with no deductible and no endorsements. The insurer has determined that Dan is legally liable for all the damages. The policy's each occurrence limit is $1,000,000; the Damage to Premises Rented to You limit is $100,000; and the policy's general aggregate is $2,000,000.
Under the Commercial General Liability policy, how much will the insurer pay for Dan's business personal property?
A. $0
B. $25,000
C. $125,000
D. $250,000
A. $0
The Commercial General Liability policy does not cover damage to property which the insured owns (e.g. Dan's business personal property).