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Question 1
What does 'liability insurance' protect the insured against?
Answer: Liability insurance protects the insured against claims arising from bodily injury or property damage caused to third parties for which the insured is legally responsible.
Question 2
What is the difference between 'occurrence' and 'claims-made' liability coverage triggers?
Answer: An occurrence policy covers losses that happen during the policy period regardless of when the claim is filed, while a claims-made policy only covers claims reported during the policy period.
Question 3
What is a 'retroactive date' in a claims-made liability policy?
Answer: A retroactive date is the earliest date from which an occurrence must arise for a claim to be covered under a claims-made policy; incidents before this date are excluded.
Question 4
What does 'personal and advertising injury' liability cover under a CGL policy?
Answer: It covers offenses such as libel, slander, false arrest, malicious prosecution, copyright infringement in advertising, and invasion of privacy.
Question 5
Under a Commercial General Liability (CGL) policy, what are the three coverage parts?
Answer: The three coverage parts are Coverage A (Bodily Injury and Property Damage Liability), Coverage B (Personal and Advertising Injury Liability), and Coverage C (Medical Payments).