CIC Commercial Casualty cheat sheet

Occurrence trigger: coverage applies to bodily injury or property damage caused by an accident, including continuous or repeated exposure to substantially the same general harmful conditions; intentional acts are generally excluded.

Coverage A (Bodily Injury and Property Damage) responds to sums the insured is legally obligated to pay as damages plus defense costs; defense is outside the limits and paid in addition.

Coverage B (Personal and Advertising Injury) covers offenses such as libel, slander, wrongful eviction, and infringement of copyright or slogan in an advertisement, subject to its own exclusions.

Coverage C (Medical Payments) pays reasonable medical expenses within one year of an accident regardless of fault, subject to a per-person limit and applicable sublimit.

Aggregate structure: each occurrence limit applies per occurrence; the general aggregate caps total paid per policy period; the products-completed operations aggregate caps that hazard separately.

Insured contract definition includes leases of premises, sidetrack agreements, easement agreements, and business contracts where liability is assumed; contractual liability exclusion applies only to contracts outside this definition.

Damage to your product and damage to your work exclusions bar coverage for the insured's own defective product or completed work, but the exception preserves coverage for damage to other property.

Impairment of property not physically injured: coverage applies when the insured's work causes loss of use of tangible property that is not physically damaged, such as a business shutdown caused by a construction defect.

Known loss and expected or intended injury exclusions bar coverage where the insured knew of the loss before inception or the injury was expected from the standpoint of the insured.

Additional insured status is created only by endorsement; a certificate of insurance is evidence of coverage and does not confer insured status or amend the policy.

CG 20 10 (2013) grants additional insured status for ongoing operations but only for liability caused in whole or in part by the named insured's acts or omissions.

CG 20 37 covers completed operations and is commonly paired with CG 20 10; without it, additional insured status ends when the named insured's work is complete.

Blanket additional insured endorsements extend status automatically to a class of entities required by written contract, avoiding the need to schedule each certificate holder.

Primary and noncontributory wording requires the additional insured's own policy to sit excess; this is typically granted via endorsement, not automatically by additional insured status.

Waiver of subrogation must be endorsed onto the policy; it prevents the insurer from pursuing the additional insured after paying a loss.

Additional insured coverage is generally limited to the scope of the contract requiring it; broader endorsements may grant status regardless of fault but raise the named insured's premium.

A 2013 CG 20 10 endorsement limits coverage to the additional insured's liability arising out of the named insured's work and excludes the additional insured's own sole negligence.

Symbols define covered autos: symbol 1 is any auto, symbol 2 is owned autos only, symbol 7 is specifically described autos, symbol 8 is hired autos, and symbol 9 is nonowned autos.

Liability coverage pays sums the insured is legally obligated to pay for bodily injury or property damage arising out of ownership, maintenance, or use of a covered auto, plus defense costs.

Garagekeepers coverage protects an insured in the business of servicing or storing customers' autos for damage to those autos while in the insured's care, custody, or control.

Hired auto liability applies to autos leased, hired, rented, or borrowed; employers may also need hired auto physical damage to cover damage to rented vehicles.

Nonowned auto liability covers autos used in the insured's business that are not owned, leased, rented, hired, or borrowed, such as employee-owned autos used for company errands.

Physical damage coverage includes collision and comprehensive (other than collision), each subject to a deductible; stated amount or actual cash value determines settlement.

Drive-other-car coverage is not automatic in business auto policies; endorsements may extend coverage to autos used by employees or owners for personal use.

Fellow employee exclusion bars liability coverage for injury to an employee injured in the course of employment, since workers compensation is the intended remedy.

Motor carrier endorsements (MCS-90) provide proof of financial responsibility for for-hire carriers and can create liability regardless of policy exclusions.

Part One (Workers Compensation) pays statutory benefits required by state law regardless of fault; the insurer pays benefits directly and no deductible typically applies.

Part Two (Employers Liability) covers the employer's legal liability for work-related injury or disease outside the statutory system, with limits stated per accident, per employee, and policy aggregate.

Part Three (Other States Insurance) extends coverage to states listed in the policy that are not already covered under Part One, typically for newly acquired operations.

Exclusive remedy doctrine: statutory workers compensation benefits are generally the employee's sole remedy against the employer, subject to state-specific exceptions.

Premium is calculated per $100 of payroll multiplied by a classification rate, adjusted by experience modification factor and premium discounts.

Experience modification compares the employer's loss history to expected losses for its classification; a mod below 1.00 reduces premium, above 1.00 increases it.

Sole proprietors, partners, and certain corporate officers may elect to be excluded from coverage; LLC members and officers are treated differently by state.

Employers liability limits are typically expressed as bodily injury by accident, bodily injury by disease per employee, and bodily injury by disease policy limit.

Federal statutes such as the Longshore and Harbor Workers' Compensation Act and FELA require separate coverage or endorsements outside the standard state workers compensation policy.