Commercial General Liability
Premises Operations Liability
Protects the contractor from claims for bodily injury or property damage sustained by third parties as a result of ongoing operations. For example, this would cover a claim made by someone who tripped and fell while walking through your job site.
Products Completed Operations Liability
Insures against claims for bodily injury and property damage arising from some defect in a completed project. For example, this would cover claims brought by individuals injured in a fire that was caused by your improper installation of an electrical panel at a hotel.
Personal and Advertising Injury Liability
Protects against liability arising from specified types of offenses that do not cause bodily injury or property damage. The most important aspect of this coverage is insurance against liability arising from false arrest, detention or imprisonment. This coverage also protects against liability arising from libel and slander.
Independent Contractors Liability
Protects an insured contractor from claims for injuries or damage caused by the operations of its subcontractors. It would, in the fire example above, protect the contractor in the event the electrical panel was installed by a subcontractor. Of course, the subcontractor should also have insurance for this exposure, and the contractor should have access to the subcontractor’s insurance by way of the hold harmless clause in the subcontract agreement. However, the independent contractors coverage in the contractor’s commercial general liability policy will protect the contractor in the event the subcontractor’s insurance has lapsed or its limits are inadequate.
Covers the liability of others that the contractor assumes through a hold harmless provision in a contract. For example, assume that a general contractor agrees to hold harmless the project owner, a member of the public is injured on the job site, and the injured individual brings suit against the owner as well as the contractor. Contractual liability coverage would cause the contractor’s commercial general liability policy to cover the project owner for any liability the project owner has to the injured party. The owner transfers their liability to the general contractor.
Pays the medical expenses incurred by third parties injured on the contractor’s premises or job sites regardless of whether or not the contractor would be legally liable for them.
General Aggregate Limit
Places an aggregate limitation on what the policy will pay for all medical expenses, personal/advertising injury, bodily injury and property damage claims within the policy period. Products completed operations claims are not subject to the general aggregate limit since there is a separate products completed operations aggregate limit.
Each Occurrence Limit
Places the limitation on the amount of insurance available to pay bodily injury, property damage and medical expense claims arising out of any one occurrence subject to the general aggregate limit.
Fire Damage Limit
Places a limitation on the amount of insurance available to pay for property damage to premises rented to the insured arising out of any fire, subject to the each occurrence limit as well as the general aggregate limit.