GENERAL LIABILITY AND THE PROFESSIONAL EXCLUSION. David Thornton

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1 GENERAL LIABILITY AND THE PROFESSIONAL EXCLUSION David Thornton

2 GREATER LEXINGTON INSURANCE AGENCY

3 RISK THE CHANCE OF LOSS OR THE UNCERTAINTY OF LOSS Handling of Risk AVOIDANCE, RETENTION, TRANSFER

4 Insurance THE TRANSFER OF RISK General Liability Professional Liability

5 Definitions COMMERCIAL GENERAL LIABILITY STANDARD LIABILITY COVERAGE NEEDED BY BUSINESS OWNERS TO PROTECT THEM FINANCIALLY AGAINST LIABILITY CLAIMS AND LAWSUITS. THIS IS A COMPREHENSIVE COVERAGE PROVIDING PROTECTION FOR BODILY INJURY (BI) AND PROPERTY DAMAGE (PD) ARISING OUT OF BUSINESS OPERATIONS INCLUDING PREMISES, OPERATIONS, PRODUCTS, COMPLETED OPERATIONS, AND ADVERTISING AND PERSONAL INJURY. CONTRACTORS E & O LIABILITY COVERAGE OPTIONAL LIABILITY ENDORSEMENT AVAILABLE FOR CONTRACTORS WHO NEED TO PROTECT THEMSELVES FOR CLAIMS BROUGHT AGAINST THEM BY THE CUSTOMERS THEY WORK FOR. IF OUR INSURED DOES SOME WORK THAT CAUSES DAMAGE BASED ON THEIR NEGLIGENCE, THIS COVERAGE MAY BE NEEDED. OUR INSURED COULD HAVE INSTALLED A FAULTY PRODUCT OR INSTALLED THE PRODUCT INCORRECTLY, WHICH COULD CAUSE SIGNIFICANT DAMAGES. A DISPUTE OR COMPLAINT CAN BE VERY COSTLY TO A SMALL-BUSINESS OWNER SO HAVING THIS COVERAGE IN PLACE COULD PREVENT FINANCIAL HARDSHIP.

6 Definitions SUBCONTRACTOR CAUSED PROPERTY DAMAGE OPTIONAL LIABILITY ENDORSEMENT THAT PROVIDES COVERAGE FOR CLAIMS THAT THE INSURED CONTRACTOR IS LEGALLY OBLIGATED TO PAY FOR PROPERTY DAMAGE CAUSED BY A SUBCONTRACTOR TO THE INSURED CONTRACTOR S WORK. THIS COVERAGE IS EXCLUDED IN THE BASE GENERAL LIABILITY FORM AND THIS ENDORSEMENT PICKS UP THE GAP IN COVERAGE. VOLUNTARY DAMAGE TO PROPERTY OF OTHERS OPTIONAL LIABILITY ENDORSEMENT THAT PROVIDES COVERAGE FOR PROPERTY DAMAGE CAUSED BY THE CONTRACTOR TO A CUSTOMER S HOME OR OTHER PROPERTY. IF A CONTRACTOR IS DOING WORK AT SOMEONE S HOME AND DAMAGES THEIR PROPERTY, THIS COVERAGE WOULD PAY FOR EXPENSES NEEDED TO MAKE THE REPAIR.

7 Definitions EMPLOYMENT PRACTICES LIABILITY INSURANCE OPTIONAL LIABILITY ENDORSEMENT THAT PROTECTS BUSINESS OWNERS AGAINST LAWSUITS OR CLAIMS BROUGHT AGAINST THEM BY THEIR EMPLOYEES. WITH LEGISLATION POTENTIALLY FAVORING EMPLOYEES, A BUSINESS OWNER NEEDS PROTECTION BECAUSE CLAIMS CAN BE VERY COSTLY. EVEN IF THE BUSINESS OWNER IS INNOCENT, LEGAL FEES AND DEFENSE COSTS COULD ADD UP, AFFECTING THE BUSINESS SIGNIFICANTLY. POTENTIAL EMPLOYMENT PRACTICES CLAIMS INCLUDE HARASSMENT, RETALIATION, NEGLIGENCE, LIBEL, SLANDER, DISCRIMINATION, MISREPRESENTATION, MENTAL ANGUISH, FAILURE TO PROMOTE, WRONGFUL TERMINATION, WRONGFUL DISCIPLINE, EMOTIONAL DISTRESS AND DEFAMATION. HIRED AND NON-OWNED AUTO LIABILITY OPTIONAL LIABILITY ENDORSEMENT THAT COVERS BODILY INJURY AND PROPERTY DAMAGE CAUSED BY A VEHICLE THAT IS HIRED BY THE BUSINESS OWNER, OR BY AN EMPLOYEE OF THE BUSINESS USING THEIR OWN VEHICLE. CONTRACTORS ARE OFTEN DRIVING TO AND FROM JOBSITES, RUNNING ERRANDS OR MAKING TRIPS TO THE LUMBER SHOP OR HARDWARE STORE, AND IN MANY CASES THEY ARE DRIVING VEHICLES THAT MAY NOT HAVE THE PROPER COVERAGE.

8 Definitions CERTIFIED LEAD RENOVATOR COVERAGE OPTIONAL LIABILITY ENDORSEMENT THAT IS NEEDED FOR CONTRACTORS THAT ARE DOING WORK IN HOMES BUILT PRIOR TO THERE ARE LAWS THAT STATE CONTRACTORS MUST BE CERTIFIED IN LEAD RENOVATING BEFORE THEY CAN DO THE WORK. SINCE THERE IS AN EXPOSURE TO LEAD AND DAMAGES RESULTING FROM THE INSURED DISRUPTING THE LEAD WHILE DOING THEIR WORK, THIS ENDORSEMENT PROVIDES THE LIABILITY PROTECTION CONTRACTORS NEED.

9 The Insuring Agreement We will pay: Those sums that the insured becomes legally obligated to pay because of bodily injury or property damage to which the insurance applies

14 Thank You for your attention! Questions? David Thornton, Greater Lexington Insurance Agency

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