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The Broad Form Property Damage endorsement can be attached to a general liability policy to eliminate the exclusion of property under the care, custody, and/or control of an insured.
Without this endorsement there is no coverage under the general liability insurance policy in the event of damage or destruction of property under the care, custody, and control of the insured. T This coverage extension is extremely important to the general contractor as respects respects "completed operations" property damage liability claims. The normal Comprehensive Comprehensive General Liability policy will not respond for "completed operations" claims claims - claims rising out of work performed on behalf of the insured by subcontractors.
* Care, Custody and Control Care, custody and control is a phrase used in liability insurance policies to eliminate coverage for damage or destruction to property under the care, custody, and control of an insured.
Coverage for property in your care, custody or control is excluded because the insured either has some ownership interest in the property or is a bailor of the property. I In these situations it is not that you can not insure these exposures, but they are simply more more correctly insured separately under other forms. Property that you have an ownership inter interest in is normally insured through a property insurance policy. Property you are a bailor for for is normally insured through a bailee policy.
Occurrence basis liability coverage
If a claim arises out of an event during the period when a policy is in force, the insurance company is responsible for its payment, up to the limits of the policy, regardless of when the business submits the claim. Experts often suggest that it is extremely important, when purchasing a property and casualty insurance policy, to determine if claims are paid on a “claims made basis” or on a “claims occurrence basis”.
Claims made basis liability coverage
If a claim is made during the time period when a liability policy is in effect, an insurance company is responsible for its payment, up to the limits of the policy, regardless of when the event causing the claim occurred.
Liability insurance limits for Bodily Injury and Property Damage coverage may be purchased either under a single limit for both, or a separate (split) limit for each.
Example: Combined single limit may be $500,000.00 for both Bodily Injury and Property Damage.
You are liable for an accident causing $300,000 of medical bills and $200,000 of property damage. Since the combined damages are equal or less than the combined single limit of $500,000, your insurance pays all the bills.
Split Limits may be $250,000 per person and $500,000 per occurrence for Bodily Injury and $100,000 per accident for Property Damage.
You cause the same accident. If the $300,000 in medical bills are for a single person, your insurance will only pay $250,000. Since you have only $100,000 in Property Damage, $100,000 is the amount your insurance company will pay.
* Fire Legal Liability - Damage to Premises Rented to You Damage to Premises Rented to You – formerly known as Fire Legal Liability Coverage – covers your liability to others if you occupy leased or rented property for which you could be held legally liable for damage to the property due to fire or explosion.
Many insurance coverages are written with a deductible
A deductible is the amount of loss the insured pays in a claim before the insurance company makes any payment. The purpose of a deductible is to discourage small claims that the insured can manage as a normal cost of doing business. The larger the deductible an insured accepts, the lower the premium charge. |
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* Directors and Officers Coverage Explained Directors and officers liability insurance provides coverage when a director or officer officer of a company commits a negligent act or omission, or misstatement or or misleading statement, and a successful libel suit is brought against the company as as a result. Usually a large deductible is required.
The policy provides coverage for directors' and officers' liability exposure if they are sued as individuals.
Coverage is also provided for the costs of defense such as legal fees and other court costs.
These are examples of the type claims which can be alleged against an organization..
* Discrimination due to race, sex, age, national origin, religion, disability, or sexual orientation * Wrongful termination * Sexual harassment * Promotions and compensation * Interference with employment contract * Hiring decisions * Conflicts of interest * Libel, slander, and defamation of character * Failure to supervise employees * Invasion of privacy * Copyright infringement, misrepresentation of ideas, and unauthorized use use of logos * Coverage is available that defends against all of those allegations and and more, including claims brought by: * Donors who feel that their contributions have not been used to further further the expressed aim of the organization. * Board members who disagree with a majority decision on the use of of funds. * Beneficiaries who feel they are entitled to more than they received. * State attorney generals who institute legal proceedings against the board board for issues such as mismanagement of funds and antitrust violations
* Employee Benefits Liability Employee Benefits Liability provides coverage for damages caused by handling of employee employee benefits programs. As an employer, your business can be held liable for errors that that may result in a loss to an employee. * Employment Practices Liability Insurance Employment Practices Liability Insurance - EPLI - covers businesses against claims by workers that their legal rights as employees of the company have been violated.
EPLI provides protection against many kinds of employee lawsuits, including claims of:
* Sexual harassment * Discrimination * Wrongful termination * Breach of employment contract * Negligent evaluation * Failure to employ or promote * Wrongful discipline * Deprivation of career opportunity * Statue Violation * Negligent Hiring * Negligent Supervision * Negligent Promotion * Negligent Retention * Disablilities * Loss of Consortium * Invasion of Privacy * Wrongful infliction of emotional distress * Drug Testing * Libel * Mental Anguish * Slander * Mismanagement of employee benefit plans benefit plans Typical EPLI policies will reimburse your company against the costs of defending a a lawsuit in court and for judgments and settlements. The policy covers legal costs, costs, whether your company wins or loses the suit. Policies typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies.
* Errors and Omissions or Professional Coverage Explained Professional liability or Errors and Omissions insurance provides coverage for liability resulting from errors or omissions in the performance of professional duties.
Professional liability insurance provides coverage for specialists in various professional fields such as banking, accounting, law, insurance and real estate. Basic liability policies do not protect against many situations arising out of business or or professional pursuits. Professional liability insurance is purchased by individuals who who hold themselves out to the general public as having greater than average expertise expertise in particular areas to cover one such gap.
* ERISA The Employee Retirement Income Security Act (ERISA) is intended to protect the participants and beneficiaries of employee benefit plans. Under ERISA, fiduciaries may be personally liable as the person “exercising "exercising discretionary judgment or control” in the administration or management of of the pension and/or welfare benefit plans or their assets Caution: Employee dishonesty coverage does not cover the “discretionary judgment” liability of of the person or persons handling the plans which is imposed by ERISA. Employee Benefit Liability does not provide coverage for individual plan administrators administrators for their individual personal liability under ERISA. These policies cover the administration of employee benefit plans, not the the “discretionary judgment”. * Experience Modification The experience modification is a factor based on the insured's actual past loss experience.
Normally the time period used for generating an experience modification is the most recent completed three policy years. This means you can improve your experience modification over time by controlling your loss activity.
The factor is used to increase or decrease the manual rates of insurance and as a result the premiums you pay. * General Aggregate The general aggregate is the maximum amount for all loss payments that will be paid by your insurance policy during a specific time period.
You may have other aggregate limits within your policy. You may have an aggregate by type of coverage. You may have an aggregate per accident, per person, or per occurrence. * Commercial General Liability - Explained General Liability insurance covers claims of bodily injury or other physical injury or property damage, personal injury (including slander or libel) and advertising injury.
The insurance company has the right to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of suit are groundless, false or fraudulent, and to make such investigation and settlement of any claim or suit as it deems expedient. However, the company is not obligated to pay any claim or judgment or to defend any suit after applicable limit of the company's liability has been exhausted by payments of judgments or settlements.
Premises/Operations The "premises" portion of your liability insurance provides for payment on your behalf of all sums you become legally obligated to pay as damages resulting from bodily injury or property damage caused by an insured peril and rising out of the ownership, maintenance, or use of premises and your operations in progress.
The "operations" portion of your liability insurance covers operations in progress and is intended for situations where your principal business operations are performed away from your premises.
Completed Operations Completed Operations provides coverage for bodily injury and property damage rising from completed or abandoned operations, provided the incident occurs away from premises owned or rented by the insured.
Products Liability Products Liability provides coverage for losses incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured.
Contractual Liability Contractual Liability provides coverage for construction and other agreements (written or oral) when you "assume" the liability of another. This is sometimes referred to as a "hold harmless" agreement.
Personal Injury Personal Injury Liability provides coverage against false arrest, detention or imprisonment, or malicious prosecution; libel, slander, defamation, or violation of right of privacy; and wrongful entry, eviction, or other invasion of right of private occupancy.
Advertising Injury Advertising Injury Liability provides coverage against injury resulting from an offense committed in the course of your advertising activities, if such injury rises out of libel, slander, defamation, violation of right of privacy, piracy, unfair competition or infringement of copyright, title or slogan.
* Liquor Liability Coverage Explained Liquor liability provides coverage for bodily injury or property damage which an insured may be held liable because of:
* Causing or contributing to the intoxication of any person * Furnishing alcoholic beverages to a person under the legal drinking age or under under the influence of alcohol * Violating any statute, ordinance, or regulation relating to the sale, gift, gift, distribution, or use of alcoholic beverages. * This coverage applies only if the insured is involved in the following activities * Manufacturing, selling, or distributing alcoholic beverages * Serving or furnishing alcoholic beverages for a charge, whether or not such such activity requires a license or is for the purpose of financial gain or or livelihood * Serving or furnishing alcoholic beverages without a charge, if a license is is required for such activity.* Personal Injury Liability - Explained Personal Injury Personal Injury Liability provides coverage against false arrest, detention or imprisonment, or malicious prosecution; libel, slander, defamation, or violation of right of privacy; and wrongful entry, eviction, or other invasion of right of private occupancy.
Advertising Injury Advertising Injury Liability provides coverage against injury resulting from an offense committed in the course of your advertising activities, if such injury rises out of libel, slander, defamation, violation of right of privacy, piracy, unfair competition or infringement of copyright, title or slogan. * Premises Medical Payments Premises medical payments extends your general liability insurance to provide coverage for medical costs of a person injured on your business’s property, regardless of fault. * Products and Completed Operations Products and completed operations insurance provides coverage for damages arising after a customer or user has product or is using your completed work.
Products coverage is generally for actual things – for example a car or a swing set. Completed operations coverage is for work done – for example a car repair or installing plumbing.
As you can see, often a task such as a plumbing repair will involve both a physical product – a new faucet – and a completed operation – actually installing the faucet correctly. * Umbrella Coverages Explained Umbrella liability insurance provides excess liability protection over the "underlying" liability insurance you carry.
It provides coverage for all other liability exposures, except specifically excluded exposures. This is subject to a large deductible. It provides automatic replacement coverage for underlying policies that have been been reduced or exhausted by loss.
* XCU Exclusions Explained “X” is the Explosion Hazard
It includes property damage rising out of blasting or explosion.
"C" is the Collapse Hazard
It includes structural property damage and property damage to any other property rising out of the following:
* Grading of land, excavating, burrowing, filling or backfilling, tunneling, pile pile driving, or coffer dam or caisson work. * Moving, shoring, underpinning, razing, or demolition of any building or or structure. "U" is Underground Damage
It includes damage to wires, conduits, pipes, mains, sewers, tanks, tunnels, or any similar property beneath the surface of the ground or water caused by and occurring during the use of mechanical equipment for the purpose of grading land, paving, excavating, drilling, burrowing, filling, backfilling, or pile driving.
When you have a classification that ends with “XCU”, coverage for these hazards can be bought back and included in the policy.
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