Flitner Commercial

• Property Loss Exposure
• Liability Loss Exposure
• Personal Loss Exposure

• Identifying loss exposures
• Analyzing loss exposures
• Evaluating the various techniques for treating the loss exposures
• Selecting the most effective technique(s)
• Implementing the selected technique(s)
• Monitoring the program and making needed corrections or adjustments

• Avoidance
• Loss control
• Retention
• Noninsurance transfer

• Corporations: entity organized under state law and entitled to the same rights as a person, distinct from its owners, who are called stockholders or shareholders
• Partnerships: for-profit business entity jointly owned by two or more persons who share ownership and profits (or losses), although not necessarily on an equal basis
• Joint Ventures: business association formed by an express or implied agreement of two or more persons (including corporations) to accomplish a particular project
• Limited Liability Companies (LLC): form of business entity that provides its owners the limited liability of a corporation and the tax advantages of a partnership
• Unincorporated Associations: voluntary association of individuals acting together under a common name to accomplish a lawful purpose

• Monoline (covers one line of business)
• Package policy (covers two or more lines of business)

• Common policy declarations
• Common policy conditions
• Two or more coverage parts

• Commercial property declarations
• Commercial property coverage forms
• Cause-of-loss forms
• Commercial property conditions
• Endorsements

• Real Property: land and whatever is growing or erected on or affixed to the land
• Personal Property: all property other than real property
• Tangible Property: all property that can be touched and that has physical existence, either real or personal
• Intangible Property: property that cannot be touched because it has no physical existence (eg patents, copyrights or trademarks)

• Covered property
• Property not covered
• Additional coverages
• Coverage extensions
• Limits
• Deductibles
• Conditions
• Additional conditions
• Optional coverages

• May not be legal to insure some kinds of property
• Somer property may not be subject to loss by the perils insured against
• Excluded because they can be insured more advantageously under other forms

• Debris removal: addn $10,000 per location
• Perservation of property: up to 30 days
• Fire department service charge
• Pollutant cleanup and removal: $10,000 limit per location
• Increased cost of construction: less of 5% AOI or $10,000
• Electronic Data: $2,500 per year

• Newly acquired of constructed property: $250,000 per building, $100,000 BPP per building
• Personal effects and property of others: $2,500 each location
• Valuable papers and records: $2,500 each location
• Property off-premises: $10,000
• Outdoor property: limit $1,000, no more than $250 per tree
• Non-owned detached trailer: $5,000

• Basic Form
• Broad Form
• Special Form

• Falling objects
• Weight of snow, ice or sleet
• Water damage
• Addn Coverage Collapse

• Fire and Lightning
• Explosion
• Windstorm and Hail
• Smoke
• Aircraft or Vehicles
• Riot or Civil Commotion
• Vandalism
• Sprinkler leakage
• Sinkholes
• Volcanic action

• Causes of loss omitted or excluded under the broad form such as theft
• Unanticipated losses (any loss other than those specifically excluded)
• All accidental losses unless the insurer can prove and excluded peril caused the loss

• Valuable papers and records
• Animals in the event of death
• Fragile articles, not including building glass, containers of property held for sale and lenses
• Builders machinery and equipment owned or help by insured unless on or within 100 feet of the described premises

• Dishonest acts of the insured, partners, or employees of the insured
• Voluntary surrendering of possession of property as the result of a fraudulent scheme
• Loss by theft of construction materials not attached to building unless being held for sale by insured
• $2,500 limit for furs
• $2,500 limit for jewelry, watches, and precious metals
• $2,500 limit for patterns, dies, molds and forms
• $250 limit for stamps, tickets and letters of credit
• Theft of money

• Costs of investigating and defending against the suit
• Potential medical expenses, lost wages, pain and suffering
• Costs incurred by the sued organization to reduce chance of additional, related losses in the future (generally not a covered loss)
• Hidden costs, including time consumed in defending against a claim and adverse publicity (generally not a covered loss)

• Claimant must allege that the organization is legally liable to pay damages
• Accused organization must then incure expenses to investigate and defend agains the claimants allegation of legal liability
• If the claimant succeeds in probing legal liability, the loss will include the amount that must be paid as damages

• Tort: civil wrong, other than a breach of contract, against another person; three broad types: negligence, intentional, strict liability
• Contract
• Statute

Occurs when a person exposes others to an unreasonable risk or harm because of failure to exercise the required degree of care

• Duty owned to another person
• Breach of that duty
• Occurrence of injury or damage
• Close causal connection betweeb the negligent act and the resulting harm

• Tort committed by a person who forsees that his or her act will harm another person
• Does not need to be performed with malicious or hostile intent

Liability that is imposed even though the defendant acted neither negligently nor with intent to cause harm

• Breech of contract
• Hold harmless agreement: contractual provision that obligates one of the parties to assume the legal liability of the other

• Permises liability exposure
• Operations liability exposure
• Products liability exposure
• Completed liability exposure

• Coverage A: bodily injury and property damage
• Coverage B: personal and advertising injury
• Coverage C: medical expenses and/or funeral expenses of persons injured on the insureds premises or injured from the insureds operations

• Insured must be legally obligated to pay damages
• Damages must result from BI or PD defined in the policy
• Policy must apply to BI or PD
• BI or PD must be caused by an occurence
• Occurence must take place in the coverage territory
• BI or PD must occur during policy period

• Special damages
• General damages
• Punitive damages

• Expected or intended injury exclusion
• Contractual liability
• Liquor liability
• Workers compensation and employers liability exclusion
• Pollution
• Aircraft, auto and watercraft
• Mobile equipment
• War
• Damage to property
• Insureds products and work
• Personal and advertising injury
• Electronic Data
• File legal liability coverage

• BI sustained in a building and caused by smoke, fumes, vapor or soot from the heating equipment
• BI or PD caused by heat, smoke or fumes from a hostile fire
• BI or PD resulting from the escape of fules, lubricants or other operationg fluids needed to perform normal functions of mobile equipment
• BI or PD sustained in a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations performed by insured

• Watercraft while ashore on the insureds premises
• Non owned watercraft if it is less than 25 feet long and not being used to carry persons or property for a fee
• Liability assumed under an insured contract from ownership, maintenance, or use of aircraft or watercraft (not autos)
• Operations of certain types of equipment attached to autos
• Parking an auto on or next to insureds premises if the auto is not owned by, rented to, or loaned to any insured (Valet parking service)

• Property owned, rented or occupied by the insured
• Premises the insured has sold, given away or abandoned
• Property loaned to insured
• Personal property in care, custody or control of insured
• Particular part of any real property on which work is being done by insured or any contractor or subcontractor working for insured
• Particular part of any property that must be restored, repaired or replaced because insureds work was incorrectly performed

• Damage to your product exclusion
• Damage to your work exclusion
• Damage to impaired property or property not physically injured exclusion
• Recalls of products, work or impaired property

• False arrest, detention or imprisonment
• Malicious prosecution
• Wrongful eviction, wrongful entry or invasion of the right of private occupancy committed by or on behalf of its owner
• Oral or written publication of material that slanders or libels a person or organization or disparages a persons or organization goods, products or services or violate a persons right of privacy
• Use of anothers advertising ideas in your advertisement
• Infringing upon another companys copyright or slogan in your advertisement

• Expenses incurred by the insured
• Up to $250 for the cost of bail bonds required because of accidents or traffic violations involving covered vehicles
• Cost of bonds to release any property of the insured held by plaintiff to ensure payment of any judgment that may be rendered against the insured
• Reasonable expenses incurred by the insured at the insurers request, including loss of earnings of the insured must miss work to assist in defense
• Court cost or other costs assessed in a suit against the insured
• Interest in judgment awarded against the insured
• Cost of defending a person or organization that the insured has agreed to hold harmless or indemnigy under an insured contract applies only if no conflict appears to exist between interests

• Any insured other than a volunteer worker
• Anyone hired to do work for insured or tenant of insured
• Person injured on that part of named insurers premises that the person normally occupies
• Person entitled to workers compensation benefit for injury
• Person injured while taking part in athletics
• BI included with the products-completed operations hazard
• BI excluded under Coverage A
• BI caused by war

• Named insured and related parties
• Employees and volunteer workers of the named insured
• Other persons and organizations

• BI or personal and adverising injury to the named insurer, to partners or members or to a co-employee or other volunteer
• BI or personal injury arising out of providing or failing to provide professional healthcare services
• Property damage to property owned, occupies or used by named insured, the named insureds employees or volunteer workers

• General aggregate limit
• Products-completed operations aggregate limit
• Personal advertising injury limit
• Each occurence
• Damage to premises rented to you
• Medical expenses

• Bankruptcy condition
• Duties in the event of occurence, offense, claim or suit
• Legal action against us condition
• Other insurance condition
• CGL is excess
• CGL is primary
• Methods of sharing condition
• Premium audit condition
• Representation condition
• Separation of insureds
• Transfer of right of recover against others to us
• When we do not renew condition

• Contribution by equal shares: each insurer pays an equal amount until the claim is fully paid or until an insurer exhausts its limits
• Contribution by limits: each insurer pays that proportion of the claim that the insurers limit bears to the total of all applicable insurance

• Statements in the declarations are accurate and complete
• Statements in the declaration are based on representations made by the insured to the insurer
• Insurer has issued the policy in reliance on the insureds representations

• Claims-made coverage trigger
• Retroactive date
• Extended reporting period

• Event that triggers coverage under the claims-made CGL form
• The 1st making of a claim during the policy period

• State endorsements
• Exclusion endorsements
• Classification endorsements
• Miscellaneous endorsements

• Liquor Liability
• Products/Completed operation liability
• Owners and contractors protective liability
• Railroad protective liability
• Pollution liability coverage forms

• Medical Benefits
• Disability Income Benefits
• Rehabilitation Benefits
• Death Benefits

• Temporary partial disability
• Temporary total disability
• Permanent partial disability
• Permanent total disability

• US Longshore and Harbor WC Act (LHWCA): provides exclusive remedy for injured maritime workers engaged in longshoring and shipbuilding
• Jones Act: federal statute that permits injured workers to sue their employer for damages due to employers negligence
• Federal Employers Liability Act: provides exclusive remedy for injured railroad workers

• Private Insurance
• Assigned Risk Plans
• State Funds and Employers Mutuals
• Self Insurance
• Pools

• Competitive state fund: owned and operated by state; competes with other private insurance in the state
• Monopolistic state fund: owned and operated by state; other insurers are not allowed to write in the state
• Employers mutual insurance companies

• Information Page General Section
• Part One: WC Insurance
• Part Two: Employers Liability Insurance
• Part Three: Other States Insurance
• Part Four: Your duties if Injury Occurs
• Part Five: Premium
• Part Six: Conditions

• Aimed at eliminating coverage for claims that would be covered under various other statutes
• Injury outside of US or Canada unless the employee is temporarily outside of US or Canada
• Liability assumed under contract (covered by CGL)
• Punitive damages for injury or death to illegally employed person
• BI to employees employed in violation of the law with the knowledge of the insured
• BI intentionally caused by the insured
• Damages arising out of employment practices
• Fines or penalties imposed for violation of federal and state law

• BI by accident limit
• BI by disease - policy limit
• BI by disease - each employee

• Experience rating plan
• Retrospective rating plan
• Premium discount
• Merit or schedule rating factors
• Rate deviations
• Expense constants
• Deductibles
• Dividend plans

Plan that increases or reduces the premium for a future period based on the insureds own loss experience for a period in the recent past

Plan that increases or decreases the premium for a policy period based on the insureds own losses during the same period

• A following form is subject to the same terms as the underlying policy limits on if the loss is covered by the underlying insurance
• A self-contained policy is subject to its own terms where coverage applies to a loss that exceeds the underlying limits only if the loss is covered under the terms of the excess policy
• A combination of the following form and the self-contained policy

• Difficulty in estimating probable maximum loss (PML) for liability exposures
• Layering of liability coverages
• Effect of aggregate limits

• Provide additional limits above the occurence limits of the insureds primary policies
• Takes the place of the primary insurance when primary aggregate limits are reduced or exhausted
• Covers some claims that are not covered by primary policies (subject to retention)

Coverage for claims that are not covered by an underlying policy due to: type of claim not being covered; underlying policys aggregate limits being depleted by previous claims

Amount that is deducted from claims that are payable under and umbrella policy and that are not covered at all by the primary policy

• When paying in excess of a claim covered by the primary policy
• Dropping down to pay a claim because the primary policys aggregate limit has been exhausted

• Claims made trigger: PL prefers CM. ISO CGL uses a 5 year extended reporting period
• Consent to settle requirements: PL insured is frequently given right to participate in decisions to settle a claim
• Selection of defense counsel: PL gives the insured right to select counsel subject to insurers approval
• Deductibles: PL is usually subject to a deductible

• Contractual liability
• Punitive damages
• Insureds dishonest, criminal, or malicious acts

• Sexual harassment
• Wrongful termination
• Unlawful discrimination

• Failure to properly advise the client regarding insurance needs
• Failure to obtain insurance for a client in a timely manner
• Failure to renew a policy at expiration wihtout giving prior notice to client
• Failure to properly adivse the client regarding appropriate limits

Covers corporation's directors and officers against liability for their "wrongful acts" that would not be covered under a CGL or auto policy. Also covers the sums that the insured company is required or permitted by law to pay to the directors and officers as indemnifications. Written on a claims-made basis.