Commercial general liability are legal liability of business firms arising out of business operations other than liability out of automobile and aviation accidents, or employees injuries.

1. Keffi Risk Management
Business Liability Insurance

2. Commercial General Liability
• A general liability policy provides
coverage for both products liability and
completed operations.
• Both products liability and completed
operations loss exposures are
included in a definition called
products- completed operations
hazard.

3. This term refers to bodily injury and
property damage liability losses
that occur away from the premises
and arise out of the insured's
product or work after the insured
has relinquished possession of the
product, or the work has been
completed.

4. For example, assume that a gas
water heater is improperly installed
and explodes one month later.
The loss is covered under the
products-completed operations
hazard.

5. General liability refers to the legal
liability of business firms arising out of
business operations other than liability
for automobile or aviation accidents or
employee injuries

6. The most important general liability loss
exposures are as follows:
a. premises and operations
b. products liability
c. completed operations
d. contractual liability
e. contingent liability

7. Products liability refers to the legal
liability of manufacturers,
wholesalers, and retailers to
persons who are injured or incur
property damage from defective
products.

8. Completed operations refer to
liability arising out of faulty work
performed away from the premises
after the work is completed.

9. Contractual liability means that the
individual or business firm agrees
to assume the legal liability of
another party by a written or oral
contract.

10. Contingent liability means the firm can
be held liable for work done by
independent contractors.
A firm can be held liable for work
performed by independent contractors
when:
(1). the activity is illegal;
(2). it is a situation that does not permit
delegation of authority; or
(3). the work is inherently dangerous.

11. An occurrence policy is one that
covers claims arising out of
occurrences that take place during
the policy period, regardless of
when the claim is made.
In contrast, the claims-made policy
only covers claims that are first
reported during the policy period,
provided the event occurred after
the retroactive date (if any) stated
in the policy.

12. The business auto coverage form can be used
by business firms to insure liability loss
exposures from automobiles.
The employer can select those automobiles to
be covered under the policy.
In addition, the firm has a choice of physical
damage coverages that can be used to insure
covered autos against damage or loss.
Nonownership liability exposures can also be
covered under the policy, which covers the firm
if employees should injure someone while
driving their cars on company business.

13. Commercial umbrella policies have certain
common features.
The liability insurance is excess over any basic
underlying coverages that may apply.
Also, the umbrella policy covers many losses
not covered by the underlying contracts,
subject to a deductible or self-insured
retention.
Finally, the contract provides broad coverage
for bodily injury liability, property damage
liability, and personal injury and advertising
liability.

14. The garage coverage form
includes:
liability insurance,
garagekeepers insurance,
and physical damage insurance.
Garagekeepers insurance covers
the garage owner's liability for
damage to customers' automobiles
while they are in the garage
owner's care for service or repairs.

15. The major features of a professional
liability policy, such as that designed for
physicians, surgeons, and dentists, are
as follows:
a. The insuring agreement provides
broad coverage.
b. Liability is not restricted only to
accidental acts.
c. The insured is protected against the
negligent acts of employees.

16. d. There is a maximum limit per
medical incident and an aggregate
limit for each coverage.
e. Professional liability insurance is
not a substitute for general liability
insurance.
f. Current forms permit the insurer to
settle the claim without the
insured's consent.
g. An extended reporting period can be
added.

17. KEFFI RISK MANAGEMENT
4900 HOPYARD ROAD, SUITE 100
PLEASANTON, CA 94588
TEL: 510-449-7672
WWW.KEFFIRISKMANAGEMENT.NET
Taiye Doherty Chfc. MBA