2010 ISO Monday Web Seminar. Commercial General Liability Coverage

Transcription

1 2010 ISO Monday Web Seminar Commercial General Liability Coverage Forms: More Than Just the CGL

2 Today s Presentation Ron Beiderman Manager General Liability ISO

3 Today s Presentation William Mauro Assistant Manager General Liability ISO

4 General Liability Coverage Forms The following general liability coverage forms are available in addition to the standard CGL Electronic Data Liability Liquor Liability Owners And Contractors Protective Liability Pollution Liability Designated Sites Pollution Liability Limited Coverage Products/Completed Operations Liability Product Withdrawal Railroad Protective Liability Underground Storage Tank Policy Designated Tanks

5 Electronic Data Liability Coverage Form Electronic Data Liability Coverage Form features Why is this form needed? Electronic data is not considered tangible property in the definition of property damage in the CGL Electronic Data Liability Coverage endorsement CG generally provides certain coverage with respect to loss of electronic data that results from physical injury to tangible property

6 Electronic Data Liability Coverage Form Electronic Data Liability Coverage Form features The form provides coverage, on a claims-made basis, with respect to damages due to loss of electronic data caused by an electronic data incident Coverage not limited to loss of e-data resulting from physical injury to tangible property

7 Electronic Data Liability Coverage Form Electronic Data Liability Coverage Form features Electronic data includes information, facts or programs stored as or on computer software, hard or floppy disks, CD-ROMs, and tapes CD-ROMs, and tapes Electronic data incident accident or a negligent act (or a series of) which results in loss of electronic data Loss of electronic data damage to, loss of, loss of use of, corruption of, inability to access, or inability to properly manipulate electronic data

8 Electronic Data Liability Coverage Form Electronic Data Liability Coverage Form features Exclusions Computer products or services Damage to your data Unauthorized use of electronic data Limits of insurance Aggregate limit: loss of electronic data Each electronic data incident limit (subject to aggregate) Optional extended reporting period available

9 Product Withdrawal Coverage Form Why is this form needed? Many exclusions found in the CGL may eliminate coverage with respect to products, including product recall or withdrawal Damage to your product Damage to your work Damage to impaired property or property not physically impaired Recall of products, work, or impaired property Expenses associated with product recalls could be costly

10 Product Withdrawal Coverage Form 2 insuring agreements: Coverage A Product Withdrawal Expenses Reimbursement of product withdrawal expenses incurred by the named insured Coverage B Product Withdrawal Liability Coverage B Product Withdrawal Liability Coverage with respect to damages for product withdrawal expenses incurred by others because of a product withdrawal

11 Product Withdrawal Coverage Form Product withdrawal expenses Costs of replacing, repairing, or repurchasing the insured s product Notification costs Mailing costs Costs of overtime, transportation, and accommodations for employees Costs of computer time Costs of hiring temporary employees Costs of transportation, shipping, or packaging Costs of warehouse or storage space Costs of proper disposal of the insured s products, or products that contain the insured s products, that cannot be reused

12 Product Withdrawal Coverage Form Product Withdrawal Coverage Form features Insured may agree to participate in the payment of the damages and expenses Coverage A and B are applicable only to products produced after the cut-off date indicated on the Declarations Option available to exclude either Coverage A or Coverage B via endorsement Coverage A may also be extended via endorsement to cover reasonable and necessary extra costs incurred to regain goodwill, market share, profit, and costs to redesign insured s product

13 Liquor Liability Coverage Form Liquor Liability Coverage Form features Why is this coverage form needed? In many states, liquor liability coverage is mandated by statute Alcoholic Beverage Control Acts Dramshop Acts Liquor Liability Exclusion in the CGL Provides liability coverage for risks engaged in the business of manufacturing, distributing, selling, serving, or furnishing alcoholic beverages

14 Liquor Liability Coverage Form ISO Liquor Liability Coverage Form and Program features Occurrence and claims-made versions available Coverage is designed to respond to an insured s legal obligation to pay damages because of injury Contains exclusion with respect to injury while any required liquor license is not in effect Aggregate and each common cause limits

15 Liquor Liability Coverage Form ISO Liquor Liability Coverage Form and Program features Extended reporting period (claims-made form) Basic ERP Automatic Supplemental ERP Optional ISO assigns numerical liquor liability grades for each state

16 OCP Coverage Form Owners and Contractors Protective Liability Coverage Form Coverage for Operations of Designated Contractor (Commonly referred to as OCP) Why is this coverage form needed? Why is this coverage form needed? A principal can be held vicariously liable for injury to others resulting from the negligence of its general contractor Property owners and contractors may require parties engaged in operations for them to provide protective liability

17 OCP Coverage Form Owners And Contractors Protective Liability Coverage Form Features Type of protective policy differs from other types of liability insurance Purchased by someone other than named insured but for the named insured s benefit Named insureds are typically property owners, general contractors, or project owners subcontracting to other contractors Coverage includes liability with respect to actions of designated contractor (party who usually purchases the policy) Can be used as an alternative to additional insured endorsements

18 OCP Coverage Form OCP Coverage Form and Program features Coverage is provided with respect to bodily injury or property damage claims arising out of operations performed for the named insured by contractors whether the insured is an owner of property or is another contractor Coverage for acts or omissions of the named insured is limited to that in connection with general supervision of the work being preformed for them Completed work is excluded Personal Injury Liability endorsement available with respect to limited additional coverage for injury arising out of false arrest, detention, or imprisonment

19 OCP Coverage Form OCP Coverage Form and Program features The other insurance condition of the OCP is generally tailored to structure the OCP as primary and noncontributory Coverage is not designed to be written in conjunction with other coverage parts unless a Principals Protective Liability endorsement is attached Applies to construction/contractors/building demolition classifications

20 Pollution Liability Coverage Forms Why are these coverage forms needed? The CGL contains a pollution liability exclusion The forms provide certain coverages for pollution incidents at insured sites as well as waste facilities Coverage may be available with respect to mandated off-site cleanup costs caused by a covered pollution incident

21 Pollution Liability Coverage Forms 2 coverage forms available to provide bodily injury and property damage liability, arising out of a pollution incident, on a claims-made basis Pollution Liability Coverage Form, which also includes coverage with respect to mandated off-site cleanup costs Pollution liability limited coverage Pollution incident from an insured site (location specified in the declarations)

22 Pollution Liability Coverage Forms Pollution Liability Coverage Forms and Program features Claims-made Aggregate limit applicable to all damages for bodily injury, property damage, and all cleanup costs Pollution incident limit applicable to all damages for bodily injury, property damage, and all cleanup costs arising out of any one pollution incident (subject to aggregate) Optional extended reporting period of one year available for purchase

23 Pollution Liability Coverage Forms Pollution Liability Coverage Forms and Program features Endorsement available to provide limited coverage with respect to additional voluntary cleanup costs incurred by the insured If insured is subject to the financial responsibility requirements imposed on UST owners under the EPA regulations, an endorsement may be attached to exclude coverage with respect to injury, damage, or expense caused by an underground storage tank incident The policy s definition of insured site can be amended by endorsement to apply, on an excess basis, with respect to locations where an insured is performing operations

24 Products/Completed Operations Liability Coverage Form Why is this coverage form needed? Provides a mechanism for products/completed operations liability coverage outside the standard CGL policy To provide occurrence-based premises-operations liability coverage under the CGL and claims-made products liability coverage under this coverage form

25 Products/Completed Operations Liability Coverage Form Products/Completed Operations Liability Coverage Form features Occurrence and claims-made versions available Coverage is provided with respect to bodily injury and property damage claims included within the products/completed operations hazard provided injury or damage: Takes place during the policy period Occurs away from insured s premises Arises out of the insured s product (or product warranties) Arises out of the insured s completed work

26 Products/Completed Operations Liability Coverage Form Products/Completed Operations Liability Coverage Form features Products/completed operations hazard definition generally does not include: Products still in the named insured s possession Work that has not been completed Property that is being transported Bodily injury or property damage caused by tools, uninstalled equipment, or abandoned or unused materials Coverage form does not include a pollution exclusion Extended reporting period (claims-made form) Basic ERP automatic Supplemental ERP optional

27 Railroad Protective Liability Coverage Form Why is this coverage form needed? Designed for when a railroad requires an owner and contractor to hold the railroad harmless for injury or damage arising out of the contractor s work Covers insured railroad with respect to claims for bodily injury or property damage and for physical damage to certain property of the insured arising out of the work or operations performed by the insured contractor Coverage A liability coverage with respect to bodily injury and property damage Coverage B protects railroad from physical damage to its property

28 Railroad Protective Liability Coverage Form Railroad Protective Liability Coverage Form and Program features Purchased by someone other than named insured but for the named insured s benefit The purchasing party purchases this policy typically for the benefit of the railroad owner Exclusions Completed work Acts or omissions of insured sole negligence type exclusion Aggregate limit and each-occurrence limit Separate sub-limit for physical damage to property (Coverage B) subject to the each-occurrence limit

29 Underground Storage Tank Policy Designated Tanks Why is this policy needed? Provides an insured with a mechanism to insure the liability with respect to a release from an underground storage tank Can be used to respond to financial Can be used to respond to financial responsibility requirements imposed on owners and operators by federal Environmental Protection Agency (EPA) regulations

30 Underground Storage Tank Policy Designated Tanks Underground Storage Tank Policy Designated Tanks features Self-contained policy Claims-made basis Coverage A bodily injury or property damage caused by an underground storage tank incident that commences on or after the retroactive date shown in the declarations Coverage B coverage for corrective-action costs Tank must be owned or operated by insured and listed in the declarations

31 Underground Storage Tank Policy Designated Tanks Underground Storage Tank Policy Designated Tanks features Aggregate limit applicable to all damages for bodily injury, property damage, and cleanup costs Underground storage tank incident limit applicable to all damages for bodily injury, property damage, and cleanup costs arising out of any one incident Separate limit for defense expenses Extended reporting period Basic ERP automatic Supplemental ERP optional Cancellation condition designed to meet cancellation requirements under EPA regulations

32 Feedback and Questions Ron Beiderman William Mauro Send feedback to: Next event: Monday, December 13, 2:00 p.m. Eastern time Key Factors to Achieve Reliable Replacement-Cost Estimates Visit to register Follow ISO on Twitter: Follow ISO on Facebook: