COMMERCIAL LIABILITY. This section contains rules, rates and rating procedures for the Commercial Liability policy.

Transcription

1 COMMERCIAL LIABILITY GENERAL INSTRUCTIONS This section contains rules, rates and rating procedures for the Commercial Liability policy. Rule I Eligibility 1.1 The owner, partnership or renter. 1.2 All risks with some exceptions ( contact Company for risks not listed.) Rule II Ineligible 2.1 Vacant or unoccupied structures 2.2 Property which is rundown or where there is considerable rubbish or trash around the premises. 2.3 Buildings in which unapproved heat lamps, portable salamander-type heaters, or similar devices are used. 2.4 All structures having exposed cellular plastic insulation (polystyrene and urethanefoamed or rigid.) Rule III Policy Writing Procedures 3.1 Commercial Property Rules Apply. 3.2 Policies are issued on the Occurrence form (Claims-Made form is not available) 3.3 The Occurrence form provides coverage against claims for: A. Bodily injury, property damage, personal injury and advertising injury arising from premises/operations in conjunction with the insured s business. B. Bodily injury and property damage arising from products/completed operations in conjunction with the insured s business CL-1

2 3.4 The Commercial General Liability includes the following coverages: A. Premises/Operations Liability B. Products/Completed Operations C. Contractual Liability D. Personal and advertising Injury E. Medical Payments F. Fire Damage Legal Liability G. Broad Form Property Damage H. Host Liquor Liability I. Incidental Medical Malpractice J. Nonowned Watercraft K. Limited Worldwide Liability L. Additional Person Insured M. Extended Bodily Injury N. Automatic coverage for Newly-Acquired Organizations Rule IV Credits and Surcharge 4.1 5% to 25% credit may be given if the company provides the property coverage (company retains the option). 4.2 Claim Free Credits- May be given on the total policy premium of property and liability, when the Policyholder has completed the following: 3 years claim free 5% discount 7 years claim free 8% discount 10 years claim free 10% discount 4.3 The company may surcharge the premium up to 50% after inspection and rating. Rule V Commercial Rates and Coverage Limits 5.1 The commercial rates are divided into two major coverage categories: A. Premises/Operations and B. Products/Completed Operations C. Products Coverage may be excluded by endorsement CL-2

3 5.2 Manual Rates are shown at the following basic limits: A. The Commercial General Liability rates, as found in the company s rate section, are divided into tow major coverage categories: 1. Premises/Operations and 2. Products/Completed Operations B. Basis Limits 1. Manual rates are shown at the following limits: a. $100,000 each occurrence for bodily injury and property damage. 1. $50,000 fire damage legal liability limit. 2. $5,000 per person for medical payments. b. $100,000 per person or organization for personal injury or advertising injury. c. The limits provided under a. and b. above are subject to either the $100,000 General Aggregate Limit (for other than products/completed operations) or the $100,000 Products/Completed Operations Aggregate Limits, whichever is applicable. 2. The Occurrence Limit applies to premises/operations and products/completed operations. 3. The Aggregate Limits apply separately to each year of the policy or any applicable policy period less than 1 year (other than an extension of less than 1 year after the policy is issued) CL-3

4 C. Increased Limits 1. Increased Limits factors for both premises/operation and products/completed operations are found in the rate section CL-6. These factors contemplate that the limit for personal injury and advertising injury will be equal to the occurrence limit selected. The basic fire damage and medical payments limits do not increase with increases in other limits. For increased fire damage or medical payments limits, refer to page CL Separate increased limits tables are applicable for premises/operations and products/completed operations. To determine the appropriate assignment refer to the rate section page CL-6. D. Rates 5.3 Premium Bases Classifications which show the symbol (A) instead of a specific rate must be referred to company for rating. A. Admissions: Total number of persons witnessing the event. B. Area: The total number of square feet of floor space at the insured s premises. C. Units: Premium based on units of exposure. D. Gross Sales: Gross sales of the business. E. Payroll: For premium computation, use $25,000 as basis for executive offices (insured s and partners). F. Total Cost: Total cost of each specific project. For premium computation, $25,000 minimum CL-4

5 Rule VI Optional Endorsements 6.1 Non-Owned Auto Liability Provides coverage for any auto that is not owned, borrowed, or hired by the insured. Premium is 1-3 Employees $25.00, 4-10 Employees $ Hired Auto Liability Provides coverage for autos leased, hired or borrowed by the insured. Premium is $20.00 per vehicle. 6.3 Rental Watercraft Coverage for boats you own used by any person or organization provided the actual use is with your permission. Contact Company for Rate. Form GL-114. Rule VII Auditing of Policies 7.1 When writing the policy, estimate the annual payroll and receipts as close as possible. 7.2 The policyholder will be contacted to establish receipts or payroll for the past policy period on or about the anniversary date of the policy. Rule VIII Fire Legal Liability Higher Limits Based is $50, Increase To Additional Premium 100,000 $ , , ,000, CL-5

6 GENERAL LIABILITY RATES For higher BI and PD limits use the tables below. All limits are expressed in thousands of dollars. Minimum premiums apply per policy. Payroll: For premium computation, use $25,000 as basis for executive offices (Insureds and Partners). Sales: For premium computation, $25,000 minimum. Premises/Operations INCREASED LIMIT FACTORS Limit BI & PD Table 1 Min. Prem. Table 2 Min. Prem. Table 3 Min. Prem. 100, , , ,000, Products/Completed Operations Limit BI & PD Table A Min. Prem. Table B Min. Prem. Table C Min. Prem. 100, , , ,000, INCREASED LIMITS MEDICAL PAY TO PUBLIC 100, , ,000 1,000,000 10, , , Additional Insured $ per insured LIABILITY DEDUCTIBLE Circumstances may dictate that to provide coverage on some risks, a liability deductible is necessary. Deductibles may be requested from $1, to $10, Contact Home Office for availability and rate CL-6

7 10010 (S) 2B Air Conditioning Equipment dealers (P) 2B Air Conditioning Dealers including installation, service or repair (S) Amusement Centers (S) 3C A Anhydrous Ammonia Dealers including application (S) 2A Antique Stores (U) Apartment Buildings (no swimming pools) (P) 1B Appliances installation, servicing or repair commercial (TV or radio receiving set installation or repair shall be separately classified and rated) (P) 1B Appliances installation, servicing or repair household (TV or radio receiving set installation or repair shall be separately classified and rated) (S) 1B Appliance Stores household type including radios, televisions, vacuums, sewing machines, cooking ranges, washing machines, and household type air conditioners (P) Auctioneers sales conducted away from the insured s premises (P) Auctions on premises owned or rented by the insured (S) 1C Auto Parts Store (S) 2C Auto Repair or service shops (includes operations of customer s cars on insured s premises) (S) 1A Bakeries (this classification includes baking operations at the same location as the store if the products baked are sold principally in that store) (S) Barber Shops (S) 1A Beauty Parlors (5-02) CL-7

8 10145 (S) 2A Beverage Stores Liquor or wine (S) 1A Beverage Stores Soft drinks and beer (S) 1B Bicycle Stores sales and servicing (S) Books and Magazine Stores (S) 2B Building Material Dealers (A) Buildings or Premises bank or office mercantile or manufacturing (Lessors risk only) (A) Buildings or Premises bank or office mercantile or manufacturing maintained by the insured (Lessors risk only) (A) Buildings or Premises office (S) 1A Camera and Photographic Equipment Stores (S) 1A Candy or Confectionery Stores (includes candy or confectionery manufacturing at the same location as the store if the products are sold principally in as store) (S) Car Washes (S) Car washes -- self service This classification applies to risks where customers physically wash their own vehicles (P) 2B Carpentry construction of residential property not exceeding three stories in height (P) 2A Carpentry interior (P) 2B Carpentry Not Otherwise Classified (P) 2A Carpentry shop only (P) Carpet or Upholstery Cleaning on customer s premises (S) 1A Catalog Store (3-00) CL-8

9 41602 (ea. acre) Cemeteries (A) Churches including dwellings occupied by clergy (S) 2A Clothing Stores includes tailoring, clothing alterations and repair work but excludes manufacturing (A) Clubs civic, service or social having buildings or premises owned or leased (activities other than club meetings are not covered) (per member) Clubs civic, service or social no building or premises owned or leased except for office manufacturing. (activities other than club meetings are not covered) (S) 2B Clubs country or golf (S) Concessionaires (P) 3B Concrete Construction including foundations excavation to be separately classified and rated (S) Copying and Duplicating Services retail (P) Crop Spraying by contractors no air craft spraying --$250 PD deductible applies-crop Drying (S) 1A Dairy Products or Butter and Egg Stores (S) 1B Delicatessens (if food is served for consumption on premises, classify and rate under the appropriate restaurant class) (P) 2B Drilling water (P) 1B Driveway, Parking Area, or Sidewalk paving or repaving (S) 2C Drugstores (S) 1C Drugstores no table or counter service for beverage or food (P) 2B Dry Wall or Wallboard Installation (3-00) CL-9

10 63010 (per dwelling) Dwellings one family (Lessors Risk only) (per dwelling) Dwellings two family (Lessors Risk only) (per dwelling) Dwellings three family (Lessors Risk only) (per dwelling) Dwellings four family (Lessors Risk only) (P) 2B Electrical Work within buildings (including incidental outside work) (P) 2B Excavation (S) 2B.850 A Fabric Stores (P) Farm Machinery Operations by Contractors (S) 2B Feed or Grain Dealers (Grain Elevators are to be separately classified and rated) (P) 2B Fence Erection Contractors do not write if fences are erected along roads or highways (S) 2B.215 A Fertilizer Dealers and Distributors (for application of dry fertilizer, use Farm Machinery Operations by contractors for liquid fertilizer and chemical application, use Crop Spraying) (A) Fire Departments volunteer (this classification applies to firehouses and fire fighters) (P) 2B Floor Covering Installation- not ceramic, tile or stone (S) 1A Floor Covering Stores (S) Florists (S) 1A Fruit or Vegetable Dealers (S) 2B Fuel Oil or Kerosene Dealers delivering to homes or farms and not owning or leasing bulk plants (S) Funeral Homes or Chapels (3-00) CL-10

11 53734 (S) Furniture or Woodwork Stripping, Refinishing or Repairing shop only (S) 1A Furniture Stores (P) Garbage, Ash, or Refuse Collecting (S) 3C A.460 Gasoline or Diesel Dealers delivering to homes or farms and not owning or leasing bulk plants (S) 2C Gasoline Stations full service (S) 2B Gasoline Stations self-service (S) 2C Gasoline Stations self and full service combined The following shall be separately classified and rated: - retail store operation - car washes - self-service car washes (S) 1A Gift Shops (S) 1A Glass Dealers and Glaziers (S) Golf Courses Municipal or Public not golf or country clubs (P) 2B Grading of Land (S) 3B Grain Milling (S) 1A Grocery Stores (A) Halls (S) 2B Hardware or Tools Distributors (S) 1B Hardware Stores (S) 2B Heating or Combined Heating and Air Conditioning Equipment Dealers (P) 2B Heating or Combined Heating and Air Conditioning Equipment dealers and installation, servicing or repair no LP gas sales or work (3-00) CL-11

12 14101 (S) 1A Hobby, Model Maker or Artist s Supply Stores (S) 2B Home Improvement Stores (P) 1B House Furnishings Installation (S) 1A Ice Cream Stores (A) Insurance Agents (P) 1B Interior Decorators (P) 2B A Irrigation or Drainage System Construction (P) Janitorial Services (S) Jewelry Stores (P) Landscape Gardening (S) Laundries and Dry Cleaners self-service property damage to customers dry cleaning is excluded (A) Lawyers Office (Personal and Advertising Injury are excluded) (S) Libraries (S) 1B Livestock Dealers (S) 2B Lumberyards (P) 3C Machine Shop (P) 3C Machinery or Equipment farm installation servicing, repair or erection (P) 1C Machinery or Equipment NOC installation, servicing, or repair (S) 3C Machinery or Equipment Dealers Farm type (S) 2B Machinery or Equipment Dealers NOC (S) 3B Machinery or Equipment Dealers yard or garden type (3-00) CL-12

13 97447 (P) 3B Masonry (S) 2B Meat, Fish, Poultry, or Seafood Processing not in airtight containers (S) 1A Meat, Fish, Poultry, or Seafood Stores (A) Medical Offices (Professional Services are excluded) (S) 2A Milk Depots and Dealers (S) Mobile Home Parks or Courts (S) Motels no swimming pools (A) Museums (S) 1A.615 A Musical Instrument Stores (S) Nursery garden (Landscape gardening shall be separately classified and rated) (P) Office Machines or appliances installation, inspection, adjustments or repair (this classification includes shop operations) (S) 1C Optical Goods Stores (S) 1A.865 A Paint, Wallpaper, or Wallcovering Stores (P) 2A Painting exterior buildings three stories or less in height (P) 1A Painting interior buildings (for spray painting operations, a property damage deductible of $250 per claim applies) (S) 1A Painting, Picture or Frame Stores (P) 1A Paperhanging (S) 1B Pet Stores and Taxidermists (5-02) CL-13

14 16471 (S) Photographers (This Class includes studios) (P) Piano Tuning (P) 2B Plumbing Light Commercial (P) 2B Plumbing Residential (S) Printing (ea. member) 1- A -- Professional and Trade Association no building or premises owned or leased except as offices (Personal and Advertising Injury are excluded) (S) Publisher Newspapers (P) Real Estate Agents (For premium purposes include payroll of clerical employees and salesmen) (per acre) Real Estate Development Property (S) 1A Records, Tapes, and Sheet Music Stores (S) 1B Restaurants Refreshment stands or drive-ins with tray service (this classification applies to risks having less than 500 square feet, of no seating) (S) 1B Restaurants self-service or self-ordering including cafeterias and smorgasbords (S) 1B Restaurants with no sale of alcoholic beverages without dance floor (S) 1B Restaurants with sales of alcoholic beverages that are less than 75% of the total annual receipts of the restaurant -- without dance floor (P) Sales, Service, or Consulting Organizations (this classification is applicable only to risks the majority of whose employees are chiefly engaged away from the premises owned, rented, or controlled by the insured as salespersons, canvassers, or (2) employeesfurnished at a charge to perform services for others, namely clerical office employees, collectors, messengers, draftspersons, auditors, accountants, consultants, and models)the following type firms shall be separately classified and Rated: - Architectural - Engineering - Legal - Medical Consulting (3-00) CL-14

15 16891 (S) 2C Seed Merchants (S) 2A.101 A Seed Merchants excluding misdelivery, error in mixture and germination failure (S) 2C.101 A Seed Merchants excluding germination failure (S) 1A Shoe Repair Shops (S) 1A Shoe Stores (P) 1A A Sign Erection, Installation or Repair (S) 1C Sporting Goods or Athletic Equipment Stores (S) 1A Stationary or Paper Products Stores (S) 1B Stores food or drink NOC (S) 1B.615 A Stores no food or drink NOC (P) Surveyors land not engaged in actual construction (professional services are excluded) (S) 1A Tailoring or Dressmaking Establishments Custom (P) Telephone Companies (S) 1B Television or Radio Receiving Set Installation or Repair (this classification includes erection of antennas) (S) 3B Tire Dealer (P) Truckers (250 mile radius or less) (P) 1A Upholstering NOC (P) 2A Upholstering shop only (this classification includes incidental furniture refinishing or repair) (per acre) 1- A.72 Vacant Land (applies solely to the existence and maintenance of property exclusive of buildings. This does not include: Property, Persons, Real Estate Development, Vacant Land used By other, and Hunting Preserves.) (S) 1B Variety Stores (3-00) CL-15

16 99851 (P) Veterinarian or Veterinary Hospitals (S) Warehouse Mini-warehouses (A) Warehouses Private (A) Warehouses Private buildings or premises occupied by multiple interests (Lessor s Risk Only) (A) Warehouses Single interest (Lessor s Risk) (P) 2A Water Softening Equipment installation, servicing, or repair (S) Water Softening Equipment rented to others (3-00) CL-16

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