Commercial General Liability (CGL) Policy

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  1. Premises & Operations Liability
    Liability arising out of conditions in and around the insured’s premises as well as its current on- and off-premises business operations.
  2. Products & Completed Operations Liability
    Liability arising out of the insured’s products or its completed work as defined in the definitions of “your product” and “your work.”
  3. Contractual Liability
    The voluntary assumption of obligations that do not exist under common law.
  4. Independent Contractor Liability
    Liability imposed on the person who hires an independent contractor to perform work on its behalf.
  5. Occurrence Policy
    Under an occurrence policy, the insured is covered for injury or damage that occurred during the policy period even if that policy has been expired for years when the actual claim is filed.
  6. Claims-Made Policy
    Under a claims-made policy, coverage applies only if the policy is in force when the claim is made, and even then it may place restrictions on coverage with respect to operations performed before a specified date.
  7. Basic Extended Reporting Period (BERP)
    applies automatically for no additional premium and lasts for up to five years.
  8. Supplemental Extended Reporting Period (SERP)
    begins upon expiration of the automatic BERP and runs indefinitely. This SERP must be purchased for an additional premium; it is provided by endorsement to the terminating policy.
  9. Hold Harmless Agreement
    an agreement to assume the legal consequences of another party’s liability.
  10. General Aggregate Limit
    This limit is the most the insurer will pay for all bodily injury and property damage claims (other than those involving the products-completed operations hazard), and all personal and advertising injury claims during the policy period.
  11. Each Occurrence Limit
    This limit is the most the insurer will pay under Coverage A for the total of all bodily injury, property damage, and medical expenses incurred as a result of any one occurrence. Claims that are governed by the each occurrence limit also will, of course, reduce one of the policy’s remaining aggregate limits, depending on whether the claims fall within the products-completed operations hazard or not.
  12. Damage to Premises Rented to You Limit
    The CGL property damage exclusion, which would otherwise eliminate coverage for damage to property the insured rents, specifically does not apply to damage by fire, or to damage to premises rented to the named insured for 7 days or less. The coverage that remains intact by virtue of this exception is subject to its own limit of insurance. That limit applies to damage to any one premises, and is set at $100,000.
  13. Medical Expense Limit
    The $5,000 medical expense limit applies per injured person.
  14. Contribution by Equal Shares
    when each insurer contributes an equal amount up to the applicable limit.
  15. Contribution by Limits
    when each policy pays a percentage of the loss that corresponds to the percentage of the applicable limit.
Card Set
Commercial General Liability (CGL) Policy
Lesson 37
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