Policy Basics
This type of insurance provides coverage for bodily injury and property damage claims resulting from your business operations.
CGL or Commercial General Liability Insurance
What type of liability involves claims for injuries or damages that occur on your business premises?
Premises Liability
What is the purpose of policy limits in Commercial General Liability Insurance?
to specify the maximum amount the insurer will pay for covered claims
What should you do immediately after an incident that might lead to a liability claim under your Commercial General Liability Insurance?
Report the incident to your insurer or agent
What are some common exclusions in a Commercial General Liability Insurance policy?
exclusions for pollution, intentional acts, and employee injuries (covered under workers' compensation)
What is the deductible typically associated with Commercial General Liability Insurance?
zero (usually no deductible)
What is product liability, and how does it relate to Commercial General Liability Insurance?
liability for injuries or damages caused by products your business manufactures or sells, and it is covered under CGL insurance
How do aggregate limits differ from per-occurrence limits in a liability insurance policy?
aggregate limits apply to the total amount the insurer will pay for all claims in a policy period, while per-occurrence limits apply to individual claims
What is the role of the insurance adjuster in the claims process?
to investigate and assess the claim, determine coverage, and negotiate settlements
How can endorsements be used to customize the coverage of a Commercial General Liability Insurance policy?
By adding or modifying coverage provisions to meet specific business needs
True or False: Commercial General Liability Insurance covers damage to your own business property.
False (It typically covers third-party claims, not damage to your own property)
This type of liability involves claims that arise from actions or negligence committed by your employees while on the job.
Employer's Liability
True or False: If a liability claim exceeds your policy limits, you are personally responsible for covering the excess amount.
True (Unless you have additional coverage like an umbrella policy)
Describe the steps involved in the claims process after you've reported a liability claim to your insurer.
(Steps may vary but typically include) investigation, evaluation, negotiation, and settlement.
True or False: Commercial General Liability Insurance typically covers claims related to employee injuries on the job.
False. (Employee injuries are usually covered by workers' compensation insurance)
This part of the policy covers legal expenses, such as attorney fees and court costs, in the event of a covered liability claim.
The "Defense Costs" or "Legal Defense Coverage"
What is the difference between occurrence-based and claims-made liability coverage in Commercial General Liability Insurance?
Occurrence-based covers claims that occur during the policy period, while claims-made covers claims reported during the policy period, regardless of when they occurred.
What is an umbrella policy, and how does it relate to Commercial General Liability Insurance coverage limits?
a policy that provides additional liability coverage beyond the limits of your underlying CGL policy
How does the insurer determine the settlement amount for a liability claim under a Commercial General Liability Insurance policy?
By considering factors such as liability, damages, policy limits, and legal advice
What is "liquor liability," and why might a business need an endorsement for it in their insurance policy?
Liability for injuries or damages caused by the sale or consumption of alcohol on the business premises, and an endorsement may be needed if the business serves alcohol.
What are the two main coverage components of a Commercial General Liability Insurance policy?
"Bodily Injury" and "Property Damage" coverage
Explain the concept of "completed operations" liability in the context of Commercial General Liability Insurance.
Liability for claims that arise after a project is completed, such as faulty construction work
Explain the concept of "endorsements" in Commercial General Liability Insurance and how they can impact coverage limits.
additional policy provisions or modifications that can expand or restrict coverage, impacting coverage limits
Explain the term "reservation of rights" and its significance in the claims process of Commercial General Liability Insurance.
when the insurer reserves the right to deny coverage or defend under a reservation of rights letter, often due to coverage uncertainties
Explain why businesses involved in high-risk activities might need specialized endorsements in their Commercial General Liability Insurance policies.
To ensure that specific risks related to their activities are covered, as standard policies may not provide adequate protection