Commercial Liability Insurance

Commercial General Liability Policy

• Coverage C: Medical Payments
• The insurer will cover the medical expenses of persons who are injured in an accident on the premises or on ways next to the premises, or as a result of the insured’s operations
• Expenses must be incurred within one year of the accident
• Payments are made without regard to legal liability
• Supplementary Payments: Coverages A and B
• In addition to the policy limits, coverage includes:
• All expenses incurred by the insurer
• Up to $250 for the cost of a bail bond
• Up to $250/day for actual loss of earnings by the insured
• Prejudgment interest

Commercial General Liability Policy

• Section II of the CGL indicates the individuals and organizations that are considered “insureds”
• If designated in the declarations, insureds include:
• Owner and spouse if a sole proprietorship
• Partners, members, and their spouses if a partnership or joint venture
• Members and managers if a limited liability company (LLC)
• Officers, directors, and stockholders if a corporation
• A trust and trustees, but only with respect to their duties as trustees
• Insureds also include persons not named in the policy:
• Volunteer workers acting for the organization
• Employees acting within the scope of employment
• Any person or organization acting as a real estate manager
• A legal representative if the named insured should die
• Any newly acquired or formed organization, other than a partnership, joint venture or LLC

Commercial General Liability Policy

• Section III of the CGL contains the coverage limits
• The general aggregate limit is the maximum amount that the insurer will pay for the sum of the following:
• Damages under Coverage A (except for amounts paid for products-completed operations hazard), damages under Coverage B, and medical payments under Coverage C
• The policy contains a separate products-completed operations hazard aggregate limit
• A personal and advertising injury limit is the maximum paid under Coverage B
• An each-occurrence limit is the maximum amount the insurer will pay for the sum of damages under Coverage A and medical expenses under Coverage C arising out of any one occurrence
• The damage to rented premises limit is the maximum amount paid for damages under Coverage A due to a single fire
• The medical expense limit is the maximum amount paid under Coverage C because of a bodily injury sustained by any one person