Commercial Liability Insurance

Exhibit 26.1 Illustration of the CGL Limits of Insurance

Commercial General Liability Policy

• Section IV of the CGL states the various conditions that apply to the coverage form
• For example, this section contains provisions for dealing with bankruptcy, and the duties in the event of an occurrence
• Section V of the CGL contains the definitions of various terms used in the policy
• Some terms defined in the policy include “advertisement”, “hostile fire”, and “volunteer worker”

Commercial General Liability Policy

• The ISO claims-made policy is similar to the occurrence policy with the major exceptions of:
• Payment of claims is on a claims-made basis
• The policy covers only those claims that are first reported during the policy period
• The event must occur after any stated retroactive date
• It contains an extended reporting period provision
• The purpose is to provide coverage under an expired claims-made policy for claims first reported after the policy expires
• The basic extended reporting period, with two separate reporting “tails” is automatically provided in certain circumstances (e.g., cancellation of coverage)
• The first tail is a five-year period after the policy expires
• Covers events that occur during the policy period, and are reported to the insurer, but a claim may not yet be made
• The second tail is a 60-day period after the expiration date
• Covers events that occur during the policy period that the insured may not be aware of

Employment-related Practices Liability Insurance

• Under the ISO employment-related practices liability insurance coverage, the insurer agrees to pay damages resulting from an “injury” arising out of:
• Demotion or failure to promote
• Wrongful termination
• Negligent hiring or supervision
• Retaliatory action against employees
• Coercing an employee to commit an unlawful act
• Work related harassment
• Employment-related libel
• Other work-related verbal, physical, mental, or emotional abuse, such as gender discrimination