Product Liability Insurance provides coverage for claims arising after a product is sold. The coverage is known as Completed Operations Liability Insurance for contractors and provides insurance for claims resulting after a construction project is completed. Manufacturers are sued years after selling a product. Distributors are named as defendants ...simply because a pro...duct passed through their warehouse. Contractors have been held liable decades after they have “Completed Operations “on construction projects.
Since claims arise over a long time frame properly structuring coverage is critical as each policy renews. Coordinating policy terms of Commercial General Liability & Commercial Umbrella policies is crucial and particularly so when a Claims Made policy provides liability limits and tail coverage issues emerge. Factors complicating this coverage include:
* Clients changing carriers
* Different carriers are used for Primary limits & Umbrella
* Coverage change from Occurrence to Claims Made
* Market conditions expand or restrict coverage year to year
* Claims may involve multiple carriers
* Documenting events which occurred years ago
Friday, October 28, 2011
WHAT IS PERSONAL & ADVERTISING INJURY LIABILITY:
When an insured intends to cause damage or injury to property or another person, the insured directly controls the risk of loss. Insurance for such non-fortuitous damage or injury is against public policy because it eliminates the socially critical deterrent effect of financial responsibility. In addiduces the undesirable effect of shifting the burden of loss from the intentional wrongdoer to other, innocent insureds who are forced to pay higher premiums.
For many years now, most commercial general liability ("CGL") policies have provided coverage for "advertising injury" and "personal injury." The terms "advertising injury" and "personal injury" are usually defined in the CGL policy by reference to a list of offenses, including a number of so-called "intentional torts," such as slander and libel, invasion of privacy, infringement of copyright, and malicious prosecution. The CGL form published in 1985 by the Insurance Services Office ("ISO") contains the following "advertising injury" and "personal injury" definitions:
"Advertising Injury" means injury arising out of one or more of the following offenses:
a. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services;
c. Misappropriation of advertising ideas or style of doing business; or
d. Infringement of copyright, title or slogan.
"Personal Injury" means injury ... arising out of one or more of the following offenses:
a. False arrest, detention or imprisonment;
For many years now, most commercial general liability ("CGL") policies have provided coverage for "advertising injury" and "personal injury." The terms "advertising injury" and "personal injury" are usually defined in the CGL policy by reference to a list of offenses, including a number of so-called "intentional torts," such as slander and libel, invasion of privacy, infringement of copyright, and malicious prosecution. The CGL form published in 1985 by the Insurance Services Office ("ISO") contains the following "advertising injury" and "personal injury" definitions:
"Advertising Injury" means injury arising out of one or more of the following offenses:
a. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services;
c. Misappropriation of advertising ideas or style of doing business; or
d. Infringement of copyright, title or slogan.
"Personal Injury" means injury ... arising out of one or more of the following offenses:
a. False arrest, detention or imprisonment;
Friday, October 21, 2011
Tail Coverage
What is Tail Coverage and how does it protect me:
Tail Coverage Claims Made:
CLAIMS MADE COVERAGE
Claims Made Policy Summary — The claims made policy protects you against incidents that arise from treatment provided after your policy’s retroactive date and are reported while your policy is in force. Your retroactive date usually reflects the date your policy started. As long as you continuously renew your claims made policy, you may report claims for incidents that occurred in previous policy years, back to the beginning of your claims made coverage.
Example of Claims Made Policy Coverage — You became a Claims Made policyholder in 1995 and have renewed your policy continuously since then, with no lapse in coverage. A patient you treated in 1997 files a claim against you now. Because you have renewed your policy continuously since 1995 and it is currently in force, you are still protected for that 1997 incident.
Benefits
1. With a Claims Made policy, the only insurance carrier you need to be concerned with is your current carrier. Instead of being sued and trying to figure out which former occurrence policy was covering you the year incident occurred and hoping that carrier is still financially viable to defend your claim, all claims brought are handled by your existing Claims Made policy regardless of when the incident occurred, pursuant to your retroactive date.
2. The premiums in the initial years of a Claims Made policy are generally less than those of an Occurrence policy offering similar coverage. In general, a Claims Made policy will save you money over an Occurrence policy after just three years.
Limits of Liability — With a Claims Made policy, the limits of liability in effect when the claim is made are the limits that apply toward any settlement or judgment.
Example of Limits of liability — In 1995 your Claims Made policy had limits of liability of $100,000/$300,000. Then, in 1998, you increased your limits to $1 million/$3 million. Also in 1998, a patient you treated in 1997 files a malpractice claim against you. Which limits of liability apply? The $1 million/$3 million limits of the current policy year apply because those are the limits in place when you reported the claim.
Tail Coverage Occurence Made:
OCCURENCE COVERAGE
Occurrence Policy Summary — The Occurrence policy protects you against incidents that occur while the policy is in force, regardless of when the claim is reported.
Example of Occurrence Policy — You became an Occurrence policyholder in 1994, and discontinued the policy in 1996. A patient you treated in 1995 files a malpractice claim against you now. Because the patient was treated while the policy was in force, you’re able to report the claim in 1998 for that 1995 incident.
Benefits — This policy automatically protects you both now and in the future for any incidents that occurred while you were a policyholder. This means that you can report claims:
1. During the current policy year, and
2. After your policy has ended.
Limits of Liability — With an Occurrence policy, the limits of liability in effect when the treatment (prompting the claim) occurred are the limits that apply toward any settlement or judgment costs.
Example of Limits of liability — In 1993 your Occurrence policy had limits of liability of $100,000/$300,000. Then, in 1998, you increased your limits to $1 million/$3 million. Also in 1998, a patient you treated in 1994 files a malpractice claim against you. Which limits of liability apply? The $100,000/$300,000 limits of the 1994 policy year apply—because those were the limits in place when the treatment prompting the claim occurred.
Tail Coverage — Tail coverage is unnecessary if you discontinue this policy because the cost of extending your claims reporting period is built into the annual premium.
Tail Coverage Claims Made:
CLAIMS MADE COVERAGE
Claims Made Policy Summary — The claims made policy protects you against incidents that arise from treatment provided after your policy’s retroactive date and are reported while your policy is in force. Your retroactive date usually reflects the date your policy started. As long as you continuously renew your claims made policy, you may report claims for incidents that occurred in previous policy years, back to the beginning of your claims made coverage.
Example of Claims Made Policy Coverage — You became a Claims Made policyholder in 1995 and have renewed your policy continuously since then, with no lapse in coverage. A patient you treated in 1997 files a claim against you now. Because you have renewed your policy continuously since 1995 and it is currently in force, you are still protected for that 1997 incident.
Benefits
1. With a Claims Made policy, the only insurance carrier you need to be concerned with is your current carrier. Instead of being sued and trying to figure out which former occurrence policy was covering you the year incident occurred and hoping that carrier is still financially viable to defend your claim, all claims brought are handled by your existing Claims Made policy regardless of when the incident occurred, pursuant to your retroactive date.
2. The premiums in the initial years of a Claims Made policy are generally less than those of an Occurrence policy offering similar coverage. In general, a Claims Made policy will save you money over an Occurrence policy after just three years.
Limits of Liability — With a Claims Made policy, the limits of liability in effect when the claim is made are the limits that apply toward any settlement or judgment.
Example of Limits of liability — In 1995 your Claims Made policy had limits of liability of $100,000/$300,000. Then, in 1998, you increased your limits to $1 million/$3 million. Also in 1998, a patient you treated in 1997 files a malpractice claim against you. Which limits of liability apply? The $1 million/$3 million limits of the current policy year apply because those are the limits in place when you reported the claim.
Tail Coverage Occurence Made:
OCCURENCE COVERAGE
Occurrence Policy Summary — The Occurrence policy protects you against incidents that occur while the policy is in force, regardless of when the claim is reported.
Example of Occurrence Policy — You became an Occurrence policyholder in 1994, and discontinued the policy in 1996. A patient you treated in 1995 files a malpractice claim against you now. Because the patient was treated while the policy was in force, you’re able to report the claim in 1998 for that 1995 incident.
Benefits — This policy automatically protects you both now and in the future for any incidents that occurred while you were a policyholder. This means that you can report claims:
1. During the current policy year, and
2. After your policy has ended.
Limits of Liability — With an Occurrence policy, the limits of liability in effect when the treatment (prompting the claim) occurred are the limits that apply toward any settlement or judgment costs.
Example of Limits of liability — In 1993 your Occurrence policy had limits of liability of $100,000/$300,000. Then, in 1998, you increased your limits to $1 million/$3 million. Also in 1998, a patient you treated in 1994 files a malpractice claim against you. Which limits of liability apply? The $100,000/$300,000 limits of the 1994 policy year apply—because those were the limits in place when the treatment prompting the claim occurred.
Tail Coverage — Tail coverage is unnecessary if you discontinue this policy because the cost of extending your claims reporting period is built into the annual premium.
Wednesday, October 12, 2011
Directors/Officers, Errors & Omission for Non-Profit Organizations
Clubs, associations and non-profits are not immune from lawsuits. Almost any day-to-day decision by anyone in a non-profit organization can trigger legal action. Such litigation not only can hurt the organization financially, but can also threaten the personal assets of the organization's members, trustees and executives. Such organizations require special, enhanced programs, available at premiums that won't break a non-profit's budget.
This specially designed D&O Policy is uniquely qualified to fill a wide range of special insurance needs for the non-profit sector. We offers programs specifically designed for community service organizations, such as libraries, civic clubs, girls and boys clubs, and scout groups. These programs can also be provided for any other non-profit organization.
The policies cover all directors, officers and employees, including staff, volunteers and committee members (past, present and future). Our non-profit D&O product offers full employment practices coverage and pays legal expenses as they are incurred.
Case in Point:
The trustees of a charitable organization decide to expand its activities into areas that were not explicitly envisioned by the founders. Soon after, the state’s Attorney General brings an action against the trustees alleging misuse of funds and property for operating outside the founding charter - even though no third party raised a complaint.
"It's better to evaluate your coverage in the boardroom, rather than in the courtroom."
This specially designed D&O Policy is uniquely qualified to fill a wide range of special insurance needs for the non-profit sector. We offers programs specifically designed for community service organizations, such as libraries, civic clubs, girls and boys clubs, and scout groups. These programs can also be provided for any other non-profit organization.
The policies cover all directors, officers and employees, including staff, volunteers and committee members (past, present and future). Our non-profit D&O product offers full employment practices coverage and pays legal expenses as they are incurred.
Case in Point:
The trustees of a charitable organization decide to expand its activities into areas that were not explicitly envisioned by the founders. Soon after, the state’s Attorney General brings an action against the trustees alleging misuse of funds and property for operating outside the founding charter - even though no third party raised a complaint.
"It's better to evaluate your coverage in the boardroom, rather than in the courtroom."
Tuesday, October 11, 2011
Garage Liability & Garage Keepers Liability
Generally speaking, garage liability insurance is purchased by someone who owns a repair shop, or some other auto service center. It typically covers liability for the premises and operations, products and completed operations. So, if you are the owner of a service center and someone who applied for employment claimed discrimination, or a customer slipped and fell or claimed faulty parts or service, you would be covered.
Garage liability insurance also covers automobiles owned by the business, but it does not cover customers' cars that are left in the care of the shop. That sort of coverage is known as garage keepers' insurance. Garage keepers' insurance is usually sold with garage liability policies, but it is still a separate contract.
Garage keepers liability insurance is coverage which designed for business owners who offer towing services, operate service stations, auto repair and body shops. It protects a customer’s vehicle when the company is keeping it at a covered location for parking or storing, or to perform service. This provides coverage to customer’s vehicles left inside the shop fo...r damage due to the insured’s legal liability (for example, the customer must prove the insured is negligent). For this type of coverage, comprehensive coverage includes specific causes of loss such as explosion, fire, theft, lightning, or vandalism. It also specifically covers any charge incurred on the building, any faulty products used for repair or service during daily operations, and any work completed on the building. Although the business owner’s personal vehicles are covered in the policy, the customer’s vehicles that are left inside the shop are excluded. Also helps promote a client’s business by promoting an air of professionalism.
Companies need coverage besides garage keepers liability insurance. Assets like tools and machinery that travel to roadside locations must be covered by inland marine insurance. Property insurance also covers materials that are located in the garage, as well as the building itself.
The options of garage keepers liability insurance are comprehensive. This means anything other than collision or overturn, specified causes of loss such as fire, lightning, or explosion; theft; or mischief or vandalism, and collision or overturns. This coverage is needed because of the “care, protection or control” exclusion in the liability section of the policy. Because the basic policy coverage is based on the “legal liability” of the insured for damage to customer’s vehicles, the customer must prove that the insured was inattentive for the damages.
It should be noticed that garage keepers liability insurances are different from garage liability insurance which covers property damage and bodily injury resulting from the operations of an auto garage.
Garage liability insurance also covers automobiles owned by the business, but it does not cover customers' cars that are left in the care of the shop. That sort of coverage is known as garage keepers' insurance. Garage keepers' insurance is usually sold with garage liability policies, but it is still a separate contract.
Garage keepers liability insurance is coverage which designed for business owners who offer towing services, operate service stations, auto repair and body shops. It protects a customer’s vehicle when the company is keeping it at a covered location for parking or storing, or to perform service. This provides coverage to customer’s vehicles left inside the shop fo...r damage due to the insured’s legal liability (for example, the customer must prove the insured is negligent). For this type of coverage, comprehensive coverage includes specific causes of loss such as explosion, fire, theft, lightning, or vandalism. It also specifically covers any charge incurred on the building, any faulty products used for repair or service during daily operations, and any work completed on the building. Although the business owner’s personal vehicles are covered in the policy, the customer’s vehicles that are left inside the shop are excluded. Also helps promote a client’s business by promoting an air of professionalism.
Companies need coverage besides garage keepers liability insurance. Assets like tools and machinery that travel to roadside locations must be covered by inland marine insurance. Property insurance also covers materials that are located in the garage, as well as the building itself.
The options of garage keepers liability insurance are comprehensive. This means anything other than collision or overturn, specified causes of loss such as fire, lightning, or explosion; theft; or mischief or vandalism, and collision or overturns. This coverage is needed because of the “care, protection or control” exclusion in the liability section of the policy. Because the basic policy coverage is based on the “legal liability” of the insured for damage to customer’s vehicles, the customer must prove that the insured was inattentive for the damages.
It should be noticed that garage keepers liability insurances are different from garage liability insurance which covers property damage and bodily injury resulting from the operations of an auto garage.
Builders Risk Coverage
Builder's risk insurance is a special type of property insurance which indemnifies against damage to buildings while they are under construction.[1] Builder's risk insurance is "coverage that protects a person's or organization's insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause.
Who Buys/Needs Builders Risk Coverage?
It is usually bought by the owner of the building but the general contractor constructing the building may buy it if it is required as a condition of the contract. It may be necessary to show proof of insurance to comply with local city, county and state building codes.
Who Buys/Needs Builders Risk Coverage?
It is usually bought by the owner of the building but the general contractor constructing the building may buy it if it is required as a condition of the contract. It may be necessary to show proof of insurance to comply with local city, county and state building codes.
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