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Does this policy cover me for professional liability?
Unless you are specifically told that your policy is amended to include professional liability, it is not covered. General Liability only covers you for actual property damage or bodily injury. Errors in judgment, mistakes, faulty business decisions, faulty designs, and similar type of losses are not considered property damage or bodily injury.
What is Fire Damage Legal Liability?
If you do not own your building, your rental or lease agreement may hold you liable if you damage it or the space that you lease. Your General Liability policy caps the coverage for this type of loss. A typical cap is between $50,000 and $300,000. Also, coverage usually extends only to your liability resulting from fire. If you think your building or the space that you lease would be worth more than that, or if you need broader coverage, consider purchasing property insurance to cover the exposure.
What limit should I purchase for Building Ordinance or Law?
This coverage applies to the cost of demolition and reconstruction (increased cost of construction) of your building in compliance with current building codes and the undamaged part of the building that may have to be demolished and reconstructed as well. Many of your local representatives can assist you with this information. For example, your local fire departments are familiar with rules governing rebuilding requirements in the event of a fire. Also, you may want to contact a local building permit office or a local architect.
Can I waive my rights of subrogation?
Yes, as long as you waive those rights prior to a loss. If you are held liable for an event that is not entirely your fault, the insurance company has the option of paying the loss on your behalf and then subrogating against the actual at-fault party. However, some of your suppliers or vendors may include language in their contract that requires you to waive subrogation rights. Your insurance carrier will support your decision to sign that contract.
Can I tell my insurance company not to pay a claim?
No. You transfer the right to settle a claim when you purchase insurance. After all, it is the insurance company’s money. In some instances, you may feel that the insurance company should fight a fraudulent claim. Fortunately, all insurance companies employ fraud investigation units. Unfortunately, the decision to fight a claim is the decision of the insurance company.
What should I consider when someone requests that I add an additional insured to a policy?
You will often be requested to add an Additional Insured within a contract. Additional Insured status gives the additional insured access to your coverage and limits. If they are sued for work related to the contract, then they can simply turn the suit papers over to you and ask your insurance company to defend them. You should only be willing to add another entity as an Additional Insured when you are comfortable depleting your limits by sharing coverage limits with them.
Do I have coverage for damage to my work?
Faulty workmanship, poor design, or damage you cause to your own construction is a cost of you doing business. They are not considered accidents and are not covered. However, if you are held liable for damage that one of your subcontractors causes to your own work, that will be covered.
Will Contractual Liability coverage cover me for breach of contracts?
No. Breach of contract is your cost of doing business. When you ask the question, “Why am I liable for this?” sometimes the answer is that a court determined you were liable (tort liability). Sometimes the answer is that you agreed to the liability in a contract (contractual liability).
Remember though that coverage still applies to your liability to a third party rather than your liability to the other party to the contract. An example of a covered act is when you are building a new commercial building and you agree to assume the liability for injury to a trespasser. An example of an act not covered is when you are building a new commercial building and you agree to pay $100 per day for every day past the expected completion date.
How should I evaluate a Medical Payment limit?
Medical Payment is used to pay medical bills for people injured on your premises. Because it pays whether you are at fault or not, it is often referred to as goodwill coverage. Unfortunately, if you choose a limit that is too high you may become targeted by fraud scams. It is not uncommon for customers to fake an injury just to test your Medical Payment coverage. If they receive a high amount, you should expect to be visited by their friends and family. To prevent that from happening, you can choose a lower limit for this coverage. You can also choose an insurance company that has extensive fraud prevention and investigation programs.
How does the per job/location aggregate apply?
You can add this coverage by endorsement. It will extend your full General Aggregate limit, usually without charge, to any location or job site where you operate. Note that this extension does not apply to your Products/Completed Operations Aggregate.
What concerns should I have about Joint Ventures?
Joint Ventures are separate legal entities and not legally a part of your company. As such, insurance policies are generally not written to include coverage for your joint ventures.
What if I declare bankruptcy?
Bankruptcy of an individual or an organization can affect the extent of the bankrupt’s legal liability to pay third party claims. The CGL bankruptcy condition states that bankruptcy of the insured or the insured’s estate will not relieve the insurer of its duties to pay damages or meet its other financial obligations.