Commercial General Liability-Coverage B&C - KAIA

1 Commercial General Liability-Coverage B&C John Dismukes| January 29, 2014 3 Property & Casualty Continuing Education Credits 1/8/201412013 ISO Commercial General LIABILITYC overage B&C John M. Dismukes, Jr., CIC, CPCU, AAI, AISD ismukes Training & Consulting, LLCT ulsa, CGL Versions Occurrence Form CG 00 01 Most common type Claims made form CG 00 02 Designed for special risks Seldom used Not approved in all Triggers Occurrence Injury or damage must occur during the policy period. The policy in effect when the occurrence happened will pay Claims Made Claim for injury or damage must be made during the policy period The policy In effect when the claim is made will Made Characteristics Retroactive date Extended Reporting Period endorsements3 Format of the CGL forms Section I - Coverages A.

2 C Section II - Who is an insured Section III - Limits of Insurance Section IV - Conditions Section V - Definitions occurrence form Section VI - Definitions Claims covered by coverage B Personal Injury Advertising page1/8/20143 Exposures covered by coverage C Medical pageCOVERAGE B -PERSONAL AND ADVERTISING INJURY7 coverage B - Insuring Agreement Pay those sums the insured becomes legally obligated to pay due to personal and advertising injury Defend the insured Defense ends when limit is - Personal And Advertising Injury False arrest, detention or imprisonment Malicious prosecution Wrongful eviction, wrongful entry, invasion of privacy Libel & slander Oral or written material that invades right of - continued Use of another s advertising ideas Infringement of copyright, trade dress, or slogan.

3 (rewritten in 07)6 coverage B - EXCLUSIONS By or at the direction of the insured with knowledge (intentional) With knowledge of falsity First publication before policy period Arising out of a criminal act Contractual liability Breach of B - EXCLUSIONS Failure of goods to perform as advertised Arising out of the wrong description of price Infringement of copyright, patent, trademark, or trade secret (applies only to personal injury not advertising injury).9 coverage B - Exclusions Insureds in the Media and internet type businesses Electronic chat rooms Unauthorized use of another s name or product Pollution (Changed slightly in 2004) War (New in 2004). Distribution of material in violation of a statute. (new in 07) (was by endsmt)9-11 JOHN S QUICK QUIZ 1.

4 Yes 2. Yes 3. No 4. No 5. C - MEDICAL PAYMENTS15 MEDICAL PAYMENTS Purpose Insuring agreement Pays for medical caused by accident Must occur on premises or next to premises Must occur in policy territory Expenses must be incurred within one C- EXCLUSIONS To any insured Persons hired to do work for the insured or tenant Tenants on area they normally occupy Workers compensation Persons injured in athletics (re-write in 2004) Injuries out of products-completed - continued BI excluded under coverage A S QUICK QUIZ 1. Covered - subject to limit 2. No 3. Yes 4. Yes 5. No 6. PAYMENTS - A & B All expenses incurred by the insurer $250 for bail bonds Cost of bonds to release attachments Reasonable expenses by the insured Costs of the suit Pre-judgment interest Post-judgment AN INDEMNITEE19 Defending an Indemnitee Will defend indemnitee and defense cost are in addition to limit IF Indemnitee does all that is required IF indemnitee does not fully cooperate, defense is INCLUDED in IS AN INSURED ?

5 211/8/20149 WHO IS INSURED Individual - includes spouse Partnership or joint venture - includes members, partners and spouse LLC - includes members and IS AN INSURED Corporation Executive Officers, Directors and Stockholders-- A Trust - including trustees Others Employees - while acting within scope Leased workers Temporary workers Volunteer Insureds - continued Managers of a LLC Real Estate Managers Persons with temporary custody if -- Legal representatives Newly acquired or newly formed organizations Acquired or Formed Organization If no other similar insurance Until the end of the policy period or 90 days Excludes prior injury or damage, coverage A & B NO automatic coverage for newly acquired or newly formed partnership, joint venture, or & O ALERT!

6 !! Last paragraph in the Who s an Insured section (go to page 60) No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or LLC that is not shown in the OF INSURANCE271/8/201411 LIMITS OF INSURANCE Limits shown on declarations page is most will be paid Six basic limits in the CGL Two Aggregates and 4 other OF INSURANCEG eneral AggregateProducts AggregatePer OccurrenceBI & PDPer Person or & AIPer Occurrence Products/CompletedOperationsMed Pay LimitDAMAGE TO PREMISES RENTEDNo pageLIMITS - EXAMPLESG eneral Aggregate$1,000, Aggregate$1,000, Occurrence$500,000 Per Occurrence$500, Pay Limit$5,000 Damage to Premises rented$50,000No page1/8/201412 Limits - Example Policy date 1-1-06 to 1-1-07 Premises liability claim 2-2-06 for $300,000.

7 No pageLIMITS - EXAMPLESG eneral Aggregate$700, Aggregate$1,000,000 Per Occurrence$500,000 Per Occurrence$500, Pay Limit$5,000 Damage to Premises rented$50,000No pageLimits - Example Policy date 1-1-06 to 1-1-07 Premises liability claim 2-2-06 for $300,000. Operations claim 4-22-06 for $500,000 and Medical payments of $50, page1/8/201413 LIMITS - EXAMPLESG eneral Aggregate$200, Aggregate$1,000,000 Per Occurrence$500,000 Per Occurrence$500, Pay Limit$5,000 Damage to Premises Rented$50,000No pageLimits - Example Policy date 1-1-06 to 1-1-07 Premises liability claim 2-2-06 for $300,000. Operations claim 4-22-06 for $500,000 and Medical payments of $50,000 Products liability claim 5-22-06 for $700, pageLIMITS - EXAMPLESG eneral Aggregate$200, Aggregate$500, Occurrence$500,000 Per Occurrence$500, Pay Limit$5,000 Damage to Premises rented$50,000No page1/8/201414 Limits - Example Policy date 1-1-06 to 1-1-07 Premises liability claim 2-2-06 for $300,000.

8 Operations claim 4-22-06 for $500,000 and Medical payments of $50,000 Products liability claim 5-22-06 for $700,000 Completed operations claim on 6-30-06 for $400, pageLIMITS - EXAMPLESG eneral Aggregate$200, Aggregate$100, Occurrence$500,000 Per Occurrence$500, Pay Limit$5,000 Damage to Premises rented$50,000No pageE&O Concerns Certificates of Insurance Check on paid claims on the CGL Don t alter wording without company approval Request addl insured endorsement from company Additional Insureds Ask for Blanket addl insured ends Notify company Explain to your insuredNo Page1/8/201415 CGL CONDITIONS Bankruptcy Duties in the event of occurrence Legal action against us Other insurance Primary Excess Methods of sharing Premium CONDITIONS - Continued Representations Separation of insureds Transfer of rights of recovery When we do not MADE VS.

9 OCCURRENCE671/8/201416 CGL QUESTIONS?Things I Learned In KindergartenAll 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 school1/8/201417 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 messTHINGS 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 FlushTHINGS 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 day1/8/201418 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 wonderTHANK YOU !

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