General Liability
What is General Liability insurance?
General Liability insurance protects businesses due to third-party claims of bodily injury, property damage, and personal or advertising injury caused by business operations, products, or services.
What is Commercial Auto insurance?
Insurance that covers vehicles used for business purposes, including cars, trucks, and vans.
What is Workers' Compensation Insurance?
Workers' compensation is insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job.
What does COI stand for and what is it?
Certificate of Insurance - A document that provides proof of insurance coverage summarizing the key aspects and limits of the policy.
What two coverages make up the Combined Single Limit?
Bodily Injury and Property Damage
What are the two types of forms that a General Liability (GL) policy can have? (Hint: one requires a retroactive date)
Occurrence and Claims-made
What are the two types of Physical Damage coverage?
Collision and Comprehensive
What is the limit on a workers' compensation policy?
Statutory
What is a Dec Page?
A dec page (declarations page) is a summary of key information about an insurance policy including policyholder details, coverage types and limits, premium amounts, and policy period. It provides an overview of the most important aspects of the policy for quick reference.
What is section 3c on a work comp policy and what does it cover?
Other states insurance. Provides coverage when employees are working in another state for a short period of time.
Name an exposure basis for General Liability.
Revenue, Sales, Square footage, etc
What is an HNOA policy and what are the symbols?
An auto policy that only covers hired and non-owned autos, indicating that the client does not own any vehicles. Symbols 8 & 9
If a company has en Ex Mod greater than 1, what does that mean?
What is agency bill vs direct bill?
Agency bill means Lockton will bill the policy and any endorsements. Direct bill means invoices will be sent to the client directly from the carrier and no billing is done by Lockton.
Which policy does not include an additional insured provision?
Workers' Compensation (but will accept property...)
There are 6 different limits on a GL policy, name 3 of them.
Each Occurrence, General Aggregate, Products & Completed Operations, Personal & Advertising Injury, Premises Rented to You (Fire), Medical Expense
Maddie is driving a Lockton vehicle for business activities and gets into an accident. Lockton's Auto policy would cover Maddie's medical expenses due to the accident. Is this True or False? Explain.
False - Auto Liability is considered third party coverage meaning it is covering claims made by other parties who suffer injury. Maddie's medical expenses would be covered under Lockton's WC policy.
Can a certificate holder request additional insured status on a workers' compensation policy? Explain.
No. Workers' compensation is designed to protect employees from injuries that occur during employment, not third parties.
What does E&S stand for? Define it.
Excess and surplus lines - a market primarily used for higher risk businesses that standard insurers won't cover.
Our client is hired by the school district to install a new playground. They carry $2M in total limits between GL & Umbrella and supply both AI and a primary and noncontributory endorsement to the school. One of the teachers gets injured testing out the slide and claims damages of $3M, naming the school, how does the teacher get paid?
Our client pays the first $2M and the school will be responsible for the next $1M
Company A has three claims in a policy year under a GL policy with no deductible. The policy has a $1M occurrence limit & $2M General Aggregate Limit. Claims occur in this order: claim #1 costs $1M, claim #2 costs $500K, and Claim #3 costs $700K, how much does the policy pay out on claim #3?
$500K
ABC Company has an auto policy with Symbol 8. If an employee is using their personal auto for business related activities and gets into an accident, would ABC's insurance respond?
No. ABC Company would need to have symbol 9 (Nonowned "Autos" only) or symbol 1 (Any "Auto") in order for coverage to apply. Symbol 8 is for hired autos only.
What is the clerical office employee class code?
8810
When a policy has a SIR, who pays first?
The insured pays first. The insured is responsible for handling and paying all claims up to the SIR amount before the insurance coverage kicks in.
A cereal manufacturer has a claims-made policy with $5M in total limit and a retroactive date of 1/1/25. Prior to that, they had a $1M Occurrence policy with a $5M Umbrella. A claim is submitted on 3/5/25 with damages totaling $3M for sickness related to a Hollywood show-dog. It was determined that the tainted batch was made on 12/15/24. How is this claim paid out?