Commercial General Liability-Coverage A John Dismukes January 29, Property & Casualty Continuing Education Credits

Transcription

1 Commercial General Liability-Coverage A John Dismukes January 29, Property & Casualty Continuing Education Credits

2 2013 ISO COMMERCIAL GENERAL LIABILITY Coverage A John M. Dismukes, Jr., CIC, CPCU, AAI, AIS Dismukes Training & Consulting, LLC Tulsa, Oklahoma [email protected] 3 Two CGL Versions Occurrence Form CG Claims made form CG Most common type Designed for special risks Seldom used Not approved in all states. 3 Coverage Triggers Occurrence Claims Made Injury or damage must occur during the policy period. The policy in effect when the occurrence happened will pay Claim for injury or damage must be made during the policy period The policy In effect when the claim is made will pay. 1

3 Claims Made Characteristics 3 Retroactive date Extended Reporting Period endorsements Format of the CGL forms 5 Section I - Coverages A, B.& C Section II - Who is an insured Section III - Limits of Insurance Section IV - Conditions Section V - Definitions occurrence form Section VI - Definitions Claims Made. Exposures covered by Coverage A - BI & PD Premises Operations Products Completed Operations Contractual 11 2

4 13 The CGL Coverage Form 13 Coverage A Bodily Injury and Property Damage Liability. 13 Insuring Agreement This is the insurer s promise Two promises Pay all sums the insured is legally obligated to pay due to BI or PD to which the insurance applies that occurred in the policy territory Defend any suit - but defense ends when limit is exhausted. 3

5 Insuring Agreement The insurance applies to BI and PD only if: The Bi or PD is caused by an occurrence in the coverage territory The BI or PD occurs during the policy period AND prior to the policy period (New 2001 language). Insuring Agreement Definitions 21 Bodily Injury Property Damage Occurrence Coverage Territory Coverage A - Exclusions 4

6 23 Coverage A Exclusions Expected or intended Assumed under a contract or agreement except: L Lease of premises E Easement Agreement A Agreement to indemnify a city S Sidetrack agreement E Elevator maintenance agreement + Assumption of tort liability. 25 Contractual Liability What is it? Why is it done? Parties involved? Types of transfers Hold Harmless agreements Exculpatory agreements 5

7 27 Coverage A Exclusions Liquor liability - except --- Workers compensation Employers liability 29 Pollution Exclusion What is a pollutant? Any solid, liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste Maybe we should ask: What isn t a pollutant? CGL Pollution Coverage 29 Some premises coverage Smoke, fumes from heating, cooling, and dehumidification equipment As a contractor if --- Heat, smoke, or fumes from a hostile fire. 6

8 CGL Pollution Coverage 29 Some Operations coverage If insured did not bring pollutants to the job site If a result of lubricants spilling from mobile equipment If in a building and the release of gasses, fumes or vapors was caused by insured or a contractor on behalf of the insured. CGL Pollution Coverage 29 Products Liability There is no exclusion for pollution arising out of the products exposure Completed Operations No exclusion applies to completed operations. Coverage A -Exclusions Continued Aircraft, auto, or watercraft excludes loading and unloading covers watercraft ashore at your premises covers non-owned watercraft under 26 feet covers valet parking Auto definition expanded (new 2004) Will show examples after mobile equipment Mobile equipment while being towed by an auto while participating in a speed contest

9 Mobile Equipment 33 Mobile Equipment? 33 Mobile Equipment? 33 8

10 Mobile Equipment? 33 MAJOR CHANGE - THE 2004 CGL!! Expanded definition of Mobile Equipment However, Mobile Equipment does not include any land vehicles that are subject to a compulsory or financial responsibility or other motor vehicle insurance law in the state where it is licensed or principally garaged --- Goes on to state these vehicles will be considered autos. 32 Mobile Equipment/Autos No page Some equipment that used to be considered mobile equipment will now be considered autos. BUT the operation of attached equipment will still be considered CGL. Examples. 9

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12 35-37 Coverage A - Exclusions War (Rewritten in 2004) Damage to property Damage to your product Damage to your work (MAJOR PROBLEM) Damage to impaired property Products recall. 39 Coverage A - Exclusions Personal and Advertising Injury Electronic Data (New in 2004). Distribution of material ---- Damage to Premises Rented to You 11

13 CGL QUESTIONS? Things I Learned In Kindergarten All I NEED TO KNOW I LEARNED IN KINDERGARTEN Every thing need to know about life I learned in Kindergarten Wisdom was not at the top of the Graduate school mountain, but there in the sand pile at Sunday school 12

14 THE THINGS I LEARNED IN KINDERGARTEN Share everything Play Fair Don t hit people Put things back where you found them Clean up your own mess THINGS I LEARNED IN KINDERGARTEN Don t take things that aren t yours Say you re sorry when you hurt someone Wash your hands before you eat Flush THINGS I LEARNED IN KINDERGARTEN Warm cookies and cold milk are good for you Live a balanced life - learn some and think some and draw and paint and sing and dance and play and work some every day 13

15 THINGS I LEARNED IN KINDERGARTEN Take a nap every afternoon When you go out into the world, hold hands and stick together Be aware of wonder Rules for Life Rules for Life If you open it - Close it If you turn it on - Turn it off If you unlock it - Lock it up If you break it - Admit it and try to fix it 14

16 Rules for Life If you borrow it - Return it If you value it - Take care of it If you make a mess - Clean it up If you move it - Put it back If you are wrong - Admit it Rules for Life If you are right - Don t dwell on it Rules for Life Your greatest glory is not in never falling, but in rising every time you fall. Confucius You don t drown by falling in water. You drown by staying there! Edwin Louis Cole 15

17 THANK YOU!!! 16