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Liability terms
General liability and the suits it answers.
Additional insuredA person or business added by endorsement to someone else's liability policy so it can claim directly for suits tied to the policyholder's work or premises.Aggregate limitThe most an insurer will pay for all covered claims during a policy period, however many separate occurrences or claims there are.Attachment pointThe loss amount at which an excess, umbrella or reinsurance layer starts paying, normally the top of the underlying limits or retention beneath it.Bodily injuryPhysical injury, sickness or disease suffered by a person, including death resulting from it; the harm that triggers liability coverage for injuries.Care, custody and controlA liability policy exclusion for damage to other people's property that the insured has in its possession or charge, such as a customer's car or goods.Commercial general liability (CGL)The standard business policy for claims that your operations, premises or products injured someone or damaged property, usually on ISO form CG 00 01.Completed operationsLiability coverage for injury or damage that occurs after a contractor or service provider finishes a job and leaves, arising out of the finished work.Contractual liabilityResponsibility you take on by agreeing in a contract to cover another party's losses, and the limited way a general liability policy responds to it.Damage to rented premisesA separate CGL limit that pays when you damage a building you rent, in the standard form by fire, despite the exclusion for property you rent or occupy.Defense costsThe attorney fees, expert fees and other expenses of fighting a claim, which some policies pay on top of the limit and others deduct from it.Employee benefits liabilityCoverage for claims that an employer's negligent mistakes in administering employee benefit plans, such as failing to enroll someone, caused a loss.Excess liabilityLiability coverage that pays only after the limits of underlying policies are used up, adding limit above them without necessarily broadening the terms.Following formAn excess or umbrella policy that adopts the terms, conditions and exclusions of the policy beneath it, except where its own wording says otherwise.General aggregateThe most a general liability policy pays in one policy period for all claims other than products-completed operations, however many occurrences there are.Insured contractA contract in which you assume another's tort liability, which the CGL covers despite its contractual liability exclusion if it fits a listed type.Liquor liabilityCoverage for injury or damage caused by an intoxicated person that an alcohol-selling business served, which a general liability policy excludes for sellers.Medical payments coverageNo-fault liability coverage that pays small medical bills for people hurt on your premises or by your operations, whoever was at fault.Notice of claimThe report a policyholder must give an insurer about a loss, claim or lawsuit. The policy sets the timing, and late notice can put coverage at risk.OccurrenceIn liability insurance, the event that triggers coverage and determines which limit and deductible apply; the ISO CGL form defines it as an accident.Occurrence policyA liability policy that covers injury or damage happening during the policy period, no matter when the claim is made, even after the policy has expired.Other insurance clauseA policy condition that decides which policy pays first, or how insurers share the cost, when more than one policy covers the same loss.Per-occurrence limitThe most a liability policy will pay for all damages arising from a single occurrence, however many people are hurt or claims are made.Personal and advertising injuryCGL coverage for listed offenses such as defamation, invasion of privacy, wrongful eviction, false arrest and copying another's advertising idea or slogan.Premises liabilityA property owner's or occupier's legal responsibility for injuries to visitors caused by unsafe conditions on the property, insured mainly under the CGL.Primary and noncontributoryWording that makes your liability policy respond first to a party you named as an additional insured, without drawing on that party's own insurance.Product liabilityA manufacturer's, distributor's or seller's legal responsibility for injury or damage caused by a defective or unreasonably dangerous product.Products-completed operations aggregateThe most a general liability policy pays per policy period for injury or damage in the products-completed operations hazard, apart from the general aggregate.Property damageIn liability policies, physical injury to tangible property including its loss of use, or loss of use of tangible property that was not physically injured.Umbrella policyA liability policy that adds limits above underlying general liability, auto and employers' liability policies and may cover some claims they do not.Waiver of subrogationAn endorsement in which an insurer gives up its right to recover a paid claim from a named party, usually one the policyholder contracted with.Wrap-up (OCIP/CCIP)A single insurance program, bought by a project owner or lead contractor, that covers the owner and all enrolled contractors on one construction project.