Commercial General Liability (CGL) ContinuedLimits of InsuranceExample of CGL LimitsTriggersExtended Reporting PeriodsClaims-Made ExamplesSlide 7Additional CGL ProvisionsCommercial General Liability (CGL)ContinuedCoverage A - Bodily Injury and Property Damage LiabilityCoverage B - Personal and Advertising Injury LiabilityCoverage C - Medical PaymentsLimitsTriggers - Occurrence vs. Claims MadeExtended Reporting PeriodsAdditional CGL ProvisionsLimits of InsuranceGeneral Aggregate LimitMost insurer will pay in total for:Coverage A except products-completed operationsCoverage B and Coverage CProducts-Completed Operations AggregateEach Occurrence LimitCoverage A and Coverage CPersonal and Advertising Injury LimitFire Damage LimitMedical Expense LimitCoverage C - per personExample of CGL LimitsGeneral Aggregate Limit $1,000,000Products and Completed Operations Limit 1,000,000Per Occurrence Limit for Coverages A and C 500,000Personal and Advertising Injury Limit 500,000Fire Damage Limit 100,000Medical Expense Limit (per person) 25,000TriggersOccurrenceBodily injury or property damage must occur during the policy periodClaims-MadeClaim must be first made during the policy period or extended reporting periodInjury or damage must not have occurred before the policy’s retroactive date (if any) or after the end of the policy periodExtended Reporting PeriodsBasic Extended Reporting Period (BERP)Automatic if policy is canceled or not renewedRenewal has later retroactive date or is occurrence policyCovers claims reported within 5 years if occurrence reported within 60 days of end of policy periodSupplemental Extended Reporting Period (SERP)Must be purchased within 60 days of end of policy periodExtends reporting period for unknown occurrences indefinitely and for known occurrences if claim develops after 5 yearsCost can be up to 200% of policy premiumReinstates policy aggregate limitsClaims-Made ExamplesPolicy Effective 1/1/93-12/31/93Retroactive Date 1/1/93Premium $40,000Policy Limits $500,000 per occurrence$500,000 aggregatePolicy not renewedNo new policy is availableInsured purchases SERP for $80,000 in January 19941Customer injured on 7/10/93Claim filed 2/15/94Claim settled for $200,000 on 6/14/95 $200,000 covered under BERP 2Customer injured on 8/15/93Incident reported to insurer on 12/18/93Claim filed 6/10/97Claim settled for $400,000 on 2/28/99$300,000 covered under BERP3Customer injured on 5/1/93Incident not known by insured until claim filed on 8/1/99Claim settled for $700,000 on 3/10/02$500,000 covered under SERPAdditional CGL ProvisionsExclusion of specific accidents, products, work or locationsLaser beam endorsementSpecial claims-made conditionsNotice of an occurrence is not notice of a claimCoverage is excess over occurrence policy with earlier effective dateInsured’s right to claim informationClaims-made versus occurrence
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