The CGL policy has several exclusions that apply to faulty workmanship. However, a number of courts have ruled that these exclusions are meaningless because damage to your own work (even if caused by a subcontractor) is not an “occurrence,” so the insuring agreement isn’t even triggered. We are now seeing legislation and CGL endorsements in…
A local community nonprofit organization is planning their annual festival. They always rent a large, 28-foot flatbed trailer to use as a stage for the bands and speakers. The organization’s event coordinator said that their former agent told them that any injuries involving the stage would be covered by their CGL policy because the trailer…
One of the most debated commercial lines issues is whether or not a vehicle is an “auto” or “mobile equipment.” When you carefully read the policy definitions, it’s amazing how many vehicles fit the definition of “mobile equipment,” even vehicles licensed and used on public highways. In fact, it’s possible that a vehicle could be…
The ISO CLM specifies how a subcontractor exposure is to be charged, depending on whether the subcontractor is adequately insured or not. If adequately insured, premium is calculated on a “total cost” basis that includes labor, materials and equipment furnished for the job. Sounds simple, but is it?
Your insureds routinely sign hold harmless agreements with all kinds of entities…property owners, contractors, large corporations, municipalities, and others. How many of these contracts do you think are covered by your insureds’ CGL policies and to what extent? In this article, we’ll give you a few actual examples that may have you grabbing for the…
An insured who leases premises accidentally damaged the building with a backhoe. He has a written lease on the premises and the lease makes him responsible for damage to the property. The agency feels that since this is an “insured contract,” the exclusion for damage to property you rent does not apply and the damage…
If you recall the old Flip Wilson TV show, he had a recurring sketch with the theme “The devil made me do it!” In the routine, his alter-ego, Geraldine, would get into trouble, then disclaim responsibility, blaming it on the devil. Too often, this happens in our business when liability is denied by the carrier.…
The insured negligently caused a fire to his own rented area. It was paid under the landlord’s property policy and now they are subrogating against the insured tenant. The insured’s carrier is saying that, even though “fire legal” is part of the CGL policy (now referred to in the CGL forms as “Damage to Premises…
In 1999, ISO, following the lead of a number of companies, introduced a series of new and revised “Montrose” endorsements for the CGL program. This filing was prompted by a California Supreme Court decision, Montrose Chemical Corp. v. Admiral Ins. Co., that adopted the “continuous trigger” of coverage under third-party liability claims and abdicated the…
One of the most often misunderstood insurance issues involves what event triggers coverage under a liability policy? Is it when the negligence occurs or when, possibly years later, the BI or PD occurs? Is there a difference in the coverage trigger between an occurrence and a claims-made policy? How does this issue affect discontinued operations…
