Casualty Insurance Basics and Policy Types
Liability foundation and the CGL
Casualty coverage responds to the insured's legal liability. Review duty, breach, causation and damages; compensatory (special and general) versus punitive damages; absolute and vicarious liability. The commercial general liability policy may be written on an occurrence form (injury during the policy period; the claim may arrive later) or a claims-made form (the claim must be made during the period or an extended reporting period, and the injury must fall after the retroactive date). Supplementary payments generally sit outside the limits; the general aggregate caps the total paid in a policy period.
Auto
Arkansas financial responsibility minimums are 25/50/25: $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage. Uninsured motorist coverage must be offered and stays in force unless the insured rejects it in writing. Personal auto parts: liability, medical payments, uninsured motorist, and physical damage split into collision and other-than-collision. Arkansas is a tort (at-fault) state, so PIP/no-fault rules from other states do not apply here.
Workers' compensation
Exclusive remedy is the key idea: statutory benefits -- medical, disability income (TTD, TPD, PPD, PTD), death and rehabilitation -- replace tort suits against the employer. Part One honors the statutory obligation; Part Two (employer's liability) responds to suits outside the statute. Arkansas workers' compensation is administered through the Arkansas Workers' Compensation Commission.
Specialty lines
Umbrellas sit above underlying limits and drop down; excess is a pure higher layer. Also know professional liability/E&O, D&O, employment practices and cyber.
Trap and rule of thumb
On claims-made forms, the retroactive date and the tail answer most questions. For split limits, apply the per-person cap first, then the per-accident cap: two claimants with $30,000 each in a 25/50 state share the $50,000 maximum.