GENERAL LIABILITY DEFINITIONS

Advertising Liability

This coverage is used to insure against claims of libel, slander, product disparagement, piracy, infringement of copyrights, etc., that arise out of the advertising of your goods, products, or services. This would include material placed on the Internet or on similar electronic means of communications.

Audit Premium

The proposed premium is based on the following estimates of annual exposures.  They are subject to audit after expiration of the policy.

Broad Form Property Damage Coverage Including Completed Operations

This coverage is used to modify the General Liability policy's "care, custody or control" and "workmanship" exclusions so that these provisions will only apply to that particular part of the work that causes damage (premises/operations) or damage to completed work that results from your own work or operations (completed operations.)

Claims-Made Form

This coverage will provide protection for only those claims reported or first made during the policy period or during any previous period that is stated in the Prior Acts or Retroactive Date option of your policy.  This option allows you to keep coverage in force under consecutive Claims-Made policies.

Contractual Liability

This coverage is used to insure against bodily injury and property damage claims arising out of the liability of others that you assume in an "insured contract" as defined in the policy.

Coverage/Limits Adequate For Products/Completed Operations

Your policy allows separate limits of liability for premises, products/completed operations and personal injury coverages. It is important that a careful review of your policy limits be made to ensure that no restrictions of coverage or lowering of limits are present.

Deductible

The deductible provision specifies the amount that will be deducted from any payment made to you because of a covered loss.

Directors And Officers Liability

This insurance is used to insure against claims arising from the negligent acts, errors, or omissions alleged to have been committed by present or former directors or officers of your corporation.

Employee Benefits

Although not normally thought of as a standard risk management review item, employee benefits can be an extremely important exposure for your business. At minimum, we recommend that a general review be conducted of your health, life and disability exposures to determine if adequate coverage is being provided for you and your employees.

Employee Benefits Liability

This coverage is used to insure against negligent acts, errors or omissions committed by you or any person for whose acts you are legally responsible for while engaging in the management of your company’s employee benefit plans.

Exclusion For Damage To Work Performed By Subcontractors On Your Behalf

This endorsement is used to eliminate coverage for property damage to your completed work that arises out of work performed by a subcontractor on your behalf.

Fire Damage Liability

This coverage is used to insure against you legal liability that arises out of fire damage to structures rented to you or temporarily occupied by you with permission of the owner.

 Hired Automobile Coverage

This coverage is used to protect against claims arising out of the use of vehicles leased, hired, rented, or borrowed by you, while in the course of business. Note that this coverage does not apply when vehicles are leased, hired, rented, or borrowed from one of your employees or a member of your household.

Host Liquor Liability

Your policy provides limited host liquor liability protection if you do not sell, manufacture, or distribute alcoholic beverages as a business. Additional restrictions may also be included in your policy and should be reviewed to ascertain whether additional coverage may need to be written.

Intellectual Property Enforcement Insurance

This coverage protects you against the infringement by others of your intellectual property. It reimburses you for your legal expenses when you have to enforce specified patents, trademarks or copyrights against infringers. It also covers any additional legal costs you may incur when your patents, trademarks or copyrights are challenged by a countersuit for validity.

Internet Liability Policy

This insurance is used to protect against claims arising from failure to protect private or confidential information of customers, prevent the transmission of computer viruses to customers, and the failure to provide access to authorized users.

Liability Limits Explained

The PER OCCURRENCE limit is the maximum amount available for claims arising out of any one occurrence.  The GENERAL AGGREGATE limit is the maximum payable amount for all claims during the policy year arising out of occurrences, except products and completed operations claims.  The PRODUCTS AGGREGATE limit is the maximum amount available for products and completed operations claims.

Limits Adequate To Include Medical Payment Costs

As part of your risk management program, a careful review of your aggregate limits of liability should be done to determine if they are adequate. This is important since your policy deducts the cost of medical payments from this aggregate when loss occurs. These payments can be as great as those associated with liability claims, which can substantially reduce the limits available for liability payments.

Liquor Liability Coverage

This coverage protects organizations whose businesses involve the manufacturing, distributing, selling or serving of liquor.  This is needed because standard General Liability policies exclude coverage for such activities.

Marine Legal Liability Coverage

This coverage is used to insure the various bailment exposures for which you might be responsible. These include repairs, alterations, maintenance, restoration, storage, mooring of ships, launching or hauling, fueling and any miscellaneous servicing done in conjunction with these operations.

Medical Payments

This coverage will reimburse, without regard to your liability, all reasonable medical expenses incurred by persons as a result of bodily injury sustained by accident as defined in your policy.

Non-Owned Auto Liability

This coverage is used to provide you with liability protection for autos you do not own, lease, hire, rent, or borrow while they are being used in connection with your business operations.

Occurrence Form

This form provides coverage for claims arising out of an accident which results in bodily injury or property damage neither expected nor intended.  The form covers such claims that occur during the policy period irrespective of when the claim is made against you.

Personal Injury Liability Coverage

This coverage is used to extend your General Liability policy to include protection against claims alleging false arrest, libel, slander, malicious prosecution, wrongful entry or wrongful eviction.

Premises/Operations Coverage

This coverage is used to insure against claims arising out of your ownership, maintenance or use of premises including any operations that are in progress.

Products/Completed Operations Coverage

This coverage is used to insure against claims arising out of bodily injury and property damage that results from products you have sold, manufactured, handled, distributed or disposed of; or for work you have performed, provided that the accident occurs away form premises you own or rent.

Professional Liability Insurance

This coverage is used to insure against loss resulting from your acts, errors or omissions that arise out of the performance of those professional services that are scheduled on this policy.

Retroactive Date

This date is used to specify, in a Claims-Made policy, the extent of coverage that is available for claims that occur prior to the inception of the policy in effect at the time such claims are made.  If a claim is made for damage that occurred before the retroactive date, the policy will not respond, even though all other requirements of the policy have been met.

Vendors Coverage

This endorsement is used to extend products coverage to include vendors of the insured product. Its purpose is to provide additional protection above standard Products Liability limits, or to afford at least limited coverage where the availability or cost of Products Liability insurance is prohibitive