Getting to know. Northeast Agencies, Inc. June Presented by:

Transcription

1 Getting to know COMMERCIAL LIABILITY INSURANCE Presented by: Northeast Agencies, Inc. June

2 Business Liability Coverage Provides Liability coverage for business operations if a claim arises due to bodily injury to customers of the insured or general public. The insurance covers a third party : Bodily Injury Property Damage Limited Contractual Liability Products/Completed Operations Personal and Advertising Injury 2

3 Premises / Operations Coverage Premises coverage included in the Business Liability policy. Premises exposures arising at the place of business, such as a store or office. (A slick floor or loose board could cause an injury). Operations exposure related to the insured s ongoing operations, generally associated with manufactures, processors, or contractors. The CGL policy covers theses operations wherever the insured is operating. (A contractor who has several jobs going on at one time has operations coverage at each job site). 3

4 Products / Completed Operations continued Must be away from the premises and arising out of the insured s work or product. Products exposure is the possibility that a product sold, manufactured, or distributed by the insured might injure a person. Completed operations relates to the insured s liability for work they have performed and finished. 4

5 Contractual Liability A CGL coverage that extends to any liability the insured may assume by entering into various types of contracts such as; building leases, easements, an agreement to indemnify a town or city if required by ordinance, and elevator maintenance agreements 5

6 Personal Injury / Advertising Injury Personal injury provides protection if the insured is accused of publishing inaccurate information that slanders or libels a person or organization, or publishes material that violates a persons right of privacy, false arrest, or wrongful eviction. Advertising injury insures against the following offenses in connection with the insured s advertising of its goods and services. Examples would be slander, libel, invasion of privacy, copyright infringement and misappropriation of advertising ideas. 6

7 Fire Legal Liability Coverage for fire damage caused by negligence on the part of an insured to premises rented to the named insured. If a fire occurs because of negligence of the insured and causes damage to property not rented to the insured, coverage would be provided under the occurrence limit. 7

8 Medical Payments Provides reimbursement for third party medical expenses caused by an accident on the insured s premises, regardless of fault of the insured. 8

9 Professional Liability Errors & Omissions Not included in the Standard Business Liability policy. Covers losses that result from the insured s failure to perform the expected duties of his profession. May be purchased separately. 9

10 True or False? General Liability will cover a contractor if their work is faulty or performed negligently. FALSE Faulty workmanship is not covered under the CGL. The following slides address this exclusion and some other important exclusions contained in the CGL policy. 10

11 Important CGL Exclusions EXCLUSION: Personal Property in the care, custody, or control of the insured. What does this mean? CGL will not cover property left in the care, custody or control of a contractor. This exposure should be covered with an Inland Marine Policy (Bailee s Policy.) 11

12 Important CGL Exclusions EXCLUSION: That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are performing operations, if the property damage arises out of those operations. What does this mean? CGL will cover property damaged by the contractor, except for the particular part they are performing work to at the time of loss. 12

13 Particular Part Example EXAMPLE: A plumbing subcontractor is performing work on a building by soldering copper pipes. He accidentally starts the building on fire while soldering, and the entire building burns down. The CGL may respond by providing property damage to all parts of the building other than the plumbing and all parts of the plumbing system because the plumber was working on that particular part of the building at the time of loss. Remember that only the insurance company adjuster will determine the actual claims coverage due to the specific circumstances involved at the time of loss. 13

14 Important CGL Exclusions EXCLUSION: That particular part of any property that must be restored, repaired or replaced because your work was incorrectly performed on it. What does this mean? CGL will not cover a contractor s faulty work. (This exposure can be covered through a Performance Bond for a specific project and time frame.) 14

15 Commercial Liability Limits Occurrence limit is any single accident, including bodily injury or property damage, which occurs during the policy period. Aggregate limit is the maximum amount the policy will pay during the current policy term. 15

16 Premium Basis Premiums for General Liability are based on one of the following factors: Annual Payroll / Number of Employees (auditable) Annual Gross Receipts (auditable) Area 16

17 Loss Runs Mandatory for most types of coverages if there is prior insurance coverage. Three to five years in time. Can be ordered by the insured directly from his carrier. 17

18 Application Completion This is the most important job an agent performs. Because the underwriter does not know the specific risk, the acceptance and rating of an insured is based primarily on the information provided by the agent. Supplemental applications may be required once the best carrier is determined for the risk. 18

19 Timing and Rates A completed submission will allow the underwriter to better judge the acceptability of a risk, as well as price that risk accordingly. If the submission is incomplete, delays will develop as more information is collected. 19

20 Sample Applications Contractors On-Line Application. Acords 125,

21 Thank You! NORTHEAST AGENCIES, INC Main Street, Suite 209 Buffalo, New York Phone: (800) Interpark Blvd., Suite 401 San Antonio, Texas Phone: (800) Cypress Road, Suite 105 Plantation, Florida Phone: (866) McCourtney road, Suite C Grass Valley, CA Phone: (866) Allstate s s Premier Expanded Market Partner 21