-Bodily Injury and Property Damage Liability will cover the occurrences that are a result of premises, operations, products, and completed operations.
-Personal Injury Liability is the injury to the mind or character of another.
-Medical Payments include medical and funeral expenses and always shown as a dollar amount per person.
-Advertising Injury Liability is essentially two parts. Advertising negatively about goods or services provided and infringing on a copyright, title, or slogan.
-Supplemental Payments include all expenses the insurance company incurs when defending an insured. Included is cost for bail bonds, reasonable expenses, taxes, prejudgment interest, and all other interest.
-An insured for the CGL policy can be an individual, partnership, LLC, corporation, and even a real estate manager.
-Limits of Insurance on CGL policies actually have two Aggregate Limits and those are Products and Completed Operations and a General Aggregate Limit.
Occurrence vs Claims Made has to do with two types of how a claim is covered. If the policy uses occurrence, that means the claim is started at the time something “bad” happens. On the other hand, if the policy is a claims made policy the claim starts when the lawsuit is filed.
The premises are the location and size of the business. This can included how many people come through the business. The insurance company will look at the premises to determine the risk.
The operation is what type of service does the company provide and how much business to they complete in a given year. This happens outside of the premises.
Products are something that the business sells and you purchase. For example, you purchase hamburger at the grocery store. This is different than completed operations. Completed operations are a service that you have done. For example, a new roof is put on your house.
An insured contract is one in which the Insured (the Indemnitor) assumes liability of another (the Indemnitee) that would be imposed on the Indemnitee by law (in the absence of a contract) for bodily injury or property damage to a third party.
Commercial Crime
Commercial Property doesn’t cover money
Commercial Property doesn’t cover theft if you have Basic or Broad
No other policy covers employee dishonesty
General Definitions
-Theft is any act of stealing. Robbery is the act of stealing that involves hurting someone else or at the minimum threatening violence. Burglary is an act of stealing in which there is forced entry and or forced exiting.
-Discovery/Loss Sustained Form are two main divisions of commercial crime. Under the sustained loss form, a loss must occur, and be discovered during the policy period in order to be covered. You have up to one year to report this loss.
Contrast this with the discovery form of crime coverage, which covers losses that happened under a different policy, or even no policy at all.
-Coverages
· Employee Theft is any theft is committed by an employee that is covered by the crime policy.
· Forgery and Alteration covers loss due to dishonesty in writing, signing, or altering checks, bank drafts, and other financial instruments
· Theft of money and securities inside the premises covers theft, destruction, and disappearance and any and all money and securities inside the premises.
· Robbery and Safe Burglary of Property other than Money and Securities inside the Premises. This would cover someone committing an armed robbery or breaking and entering during non-business hours. The intruder would steal items or property.
· Outside the Premises would cover any and all theft that takes place outside of the premises. Computer Fraud that insures against theft of money, securities, or property by using a computer to transfer covered property from the insured’s premises or bank to another person or place.
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· Funds Transferred Fraud is the criminal and intentional deprivation of the Insured’s funds resulting directly from Fraudulent Instructions given to a financial institution to transfer pay or deliver funds of the Insured from a Bank Account.
· Money Orders and Counterfeit Money covers loss due to acceptance of a money order that was issued (or is purported to have been issued) by a post office or express company and loss due to acceptance of counterfeit paper currency
Burglary
A person unlawfully enters the premises and removes property. There will usually be evidence of a break-in.
Theft
Any act of stealing
Robbery
One person takes the property of another person and has threatened to, or caused harm.
Crime Coverage Forms
Commercial Crime coverage forms (Discovery/Loss sustained)
Loss sustained form
Covers losses that are sustained during the policy period and discovered either during the policy period or up to one year after the policy expires
Policy does not extend coverage beyond the policy expiration date
Discovery form
Covers losses that are sustained at any time and discovered either during the policy period or up to 60 days after the policy expires
Insuring agreements
Employee theft
Forgery or alteration
Inside the premises
Theft of money and securities
Robbery or burglary of other property
Outside the premises
Computer fraud
Funds transfer fraud
Money Order
Coverages
Employee theft
The employee is stealing securities, money or other property
Forgery or alteration
A document or signature that is forged or not genuine. It is not authorized.
Inside the premises – Theft of money and securities
Inside the premises – robbery or safe burglary of other property
Outside the premises
Computer fraud
Theft that occurs in relation to the use of a computer and the fraudulent removal of property from one person to another
Funds transfer fraud
Money orders and counterfeit money
