Glossary |
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Comprehensive General Liability:
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| Comprehensive General Liability (CGL) insurance is a two-party contract with payments made to a third party. Every business has certain legal liability exposures that must be covered. A general liability policy protects commercial insured's from those liability exposures.
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Products/Completed Operations: |
| Product Liability covers bodily injury or property damage incurred as a consequence of some defect in the product sold or manufactured. |
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Completed Operations: |
| Coverage is available to indemnify the insured for work performed off site. This would include installation work, construction, servicing or repair work. Completed Operations coverage would pay for bodily injury/property damage cause by negligent or faulty work by an insured. Deductibles of $1,000 and upward are commonly found on a Completed Operations policy. Most General Liability insurance policies exclude "Insured's Own Work" or "Property in the Care, Custody, or Control of the Insured." |
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Owners & Contractors Protective Liability: |
| Owners & Contractors Protective (OCP) liability insurance is designed to cover a party that has hired an independent contractor for claims brought against the hiring party that arise from the independent contractor's work on its behalf. Coverage for independent contractor liability is automatically provided under the Commercial General Liability (CGL) insurance policy. |
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Umbrella Policy: |
| An Umbrella policy provides additional limits of liability for the policyholder over and above the limits provided by the primary liability policies. Generally, Umbrella policies have broader policy language than the primary liability policies, which assists in filling in the gaps from a basic liability policy. In essence, the additional coverage provided by an Umbrella policy is three fold: 1. it provides higher limits than the other coverages owned, 2. it covers exposures not otherwise covered and, 3. it provides automatic replacement for existing coverages exhausted or reduced by loss. |
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Workers' Compensation: |
| In most states, Workers' Compensation insurance coverage is mandatory for all employers with any direct or indirect employees. The exposure may exist even when an employer hires an "independent contractor," in the event that all of the "independent contractor" conditions are not satisfied. Workers' Compensation benefits are statutory and are paid by the insurance company in accordance with the state law. These benefits may include medical and surgical assistance, financial compensation to the worker for his/her loss of earnings, death benefits, occupational or radiation diseases, or disability arising from such a disease or occupational injuries. |
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Bonds: |
A Surety Bond guarantees the performance or fulfillment of a contract or a specific obligation. Some of the various Surety Bonds offered are: Contract (also known as Performance, Labor and Material or Completion Bonds), Supply, License and Permit. Bid Bond Service may also be provided for entities required to furnish Bid Bonds with their job bids on a regular basis.
A Fidelity Bond protects an employer against the dishonesty of their employees. Dishonest employee acts might include the theft of money, securities, property, check forgery, or computer fraud. |
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EPLI (Employment Practices Liability Insurance): |
| EPLI provides coverage for employment discrimination, sexual harassment, and wrongful termination. Coverage includes defense costs as well |
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Errors and Omissions/Professional Liability: |
| This policy indemnifies the insured against liability damages (and the cost of defense) based on alleged or real professional errors and omissions or mistakes when acting on behalf of another. Those that may benefit from this type of policy would be: architects/engineers, physicians, attorneys, law enforcement officers, realtors, escrow agents, accountants, stockbrokers, directors and officer of corporations. |
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Business Auto: |
| Business Auto may be written for coverage on owned, leased, hired, or borrowed private passenger vehicles, trucks, trailers, and semi trailers that are owned and used by businesses. Liability and physical damage coverage is included in the policy. Drive Other Car coverage (DOC) may be added for all officers and key personnel driving a company furnished vehicle on a regular basis. |
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Personal Auto: |
| This policy covers damages resulting from the noncommercial (personal/family) use of an automobile. The policy may be written to provide liability coverage, medical payments, uninsured motorists coverage, and physical damages |
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The Additional Insured Endorsement: |
There are many different types of A/I endorsements but these are the most common ISO (Insurance Services Offices) forms:
- CG2010 – Owners, Lessors and Contractors – 4 versions since the November 1985 edition (1185).
- CG2033 – Automatic status when required in construction agreement/contract.
- CG2037 – Owners, Lessors and Contractors – Provides Completed Operations coverage.
- CG2026 – Designated Person or Organization.
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‘Primary’ and ‘Primary & Non-Contributory’ Wording: |
| This endorsement is requested so the GC’s insurance limits aren’t used to pay subcontractors claims. There is no standard ISO (Insurance Services Offices) form for this endorsement |
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Waiver Of Subrogation: |
CG2404 - Waiver of Transfer Right of Recovery Against Others.
This endorsement is requested so that your insurance company won’t try to get money back from the GC’s insurance policy if the GC’s is found to be partially at fault and your insurance company paid the whole claim.
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General Liability Insurance
