CISR Commercial Casualty I key terms

Failure to use the degree of care a reasonable person would use in similar circumstances, resulting in harm to another. A claimant must prove duty, breach, causation, and damages.

A civil wrong, other than a breach of contract, that causes injury or loss to another person and gives that person a right to sue for damages.

The legal obligation one person owes another to act reasonably and avoid foreseeable harm. Whether a duty exists is usually decided by the court before negligence is evaluated.

The connection between a defendant's conduct and an injury when the harm is a natural, foreseeable result of that conduct rather than a remote or unrelated consequence.

Legal responsibility one party bears for the acts of another, such as an employer being held liable for an employee's negligence committed within the scope of employment.

Liability imposed without proof of fault or negligence, typically for abnormally dangerous activities or for defective products that injure users.

The area of law holding manufacturers, distributors, and sellers responsible for injuries or damage caused by defective or unreasonably dangerous products they place in the stream of commerce.

The body of law governing a property owner's or occupier's responsibility for injuries to people who come onto the property, with the duty owed varying by the visitor's legal status.

A harmful act done deliberately rather than carelessly, such as battery, assault, or trespass, which liability policies frequently exclude because the resulting harm was expected.

Money awarded to put an injured party back in the position they would have occupied had the injury not occurred, covering items such as medical bills, lost wages, and pain and suffering.

Damages awarded to punish a defendant for especially reckless or malicious conduct and to deter similar behavior, rather than to reimburse the claimant for actual loss.

A rule that reduces an injured person's recovery by their own percentage of fault, and in some states bars recovery entirely when that fault exceeds a set threshold.

A contract clause in which one party promises not to hold another party responsible for specified losses, often paired with a promise to defend and indemnify that party.

A state law setting the deadline for filing a lawsuit after an injury or loss occurs; claims filed after that deadline are generally barred regardless of merit.

In the CGL form, an accident, including continuous or repeated exposure to substantially the same general harmful conditions, that results in bodily injury or property damage during the policy period.

Physical injury, sickness, or disease sustained by a person, including death resulting from any of these at any time. Emotional distress alone generally does not qualify unless tied to physical harm.

Physical injury to tangible property, including resulting loss of use, or loss of use of tangible property that has not been physically injured.

The CGL insuring agreement that pays sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which the policy applies.

The CGL insuring agreement covering sums the insured must pay for personal and advertising injury offenses, such as libel, slander, and wrongful eviction, committed in the course of business.

The CGL coverage that pays reasonable medical expenses for bodily injury caused by an accident on the insured's premises or arising from the insured's operations, without regard to fault.

The maximum amount the insurer will pay for all damages arising out of any one occurrence or offense, regardless of how many claimants or claims are involved.

The most the insurer will pay under Coverage A and Coverage B during a policy period for all claims other than those subject to the products-completed operations aggregate.

The exposure for bodily injury or property damage occurring away from the insured's premises and arising from the insured's product or completed work after the insured has relinquished possession of it.

A CGL exclusion removing coverage for damage to personal property in the insured's care, custody, or control, or on premises the insured occupies, because such property should be insured separately.

A CGL exclusion barring coverage for damage to the named insured's product arising out of the product itself, although damage that the product causes to other property may still be covered.

A CGL exclusion that removes coverage for liability the insured assumes under a contract, except for liability assumed in an insured contract such as a lease or a business indemnity agreement.

A defined term in the CGL policy describing certain contracts, such as leases of premises and easement agreements, for which assumed liability is carved back into coverage.

A CGL exclusion that removes coverage for bodily injury or property damage the insured expected or intended, which is why deliberate harmful acts fall outside the policy.

Amounts the CGL insurer pays in addition to the limits of liability, such as defense costs, bail bonds, and lost earnings for attending hearings at the insurer's request.

A dollar amount the insured must pay toward a loss before the insurer responds, often used with endorsements or with policies that sit above other coverage.

A person or organization, other than the named insured, granted insured status under another party's policy for liability arising out of that party's operations, products, or premises.

An additional insured added to a policy by name on an endorsement, so coverage applies only to the specific entities listed and only for the described operations or agreements.

An endorsement that automatically extends insured status to a class of parties, such as all entities requiring it under a written contract, without naming each one individually.

An endorsement making the named insured's policy respond first and requiring it to pay without seeking contribution from the additional insured's own insurance when both policies apply to a loss.

An agreement in which an insurer gives up its right to recover from another party after paying a claim, often required by contract and provided by the insured's carrier through an endorsement.

A short form, commonly an ACORD document, summarizing the coverages and limits in force on a given date. It is evidence of insurance, not a contract that amends the policy.

The work or activities a named insured is performing at a job site at the time of a loss; additional insured status is often limited to this phase unless completed operations is also granted.

The phase after an insured's work at a job site is finished and the property has been put to its intended use, which must be added by endorsement to cover additional insureds.

A state law that limits or voids contract provisions requiring one party to indemnify another for the other party's own negligence, affecting how additional insured and indemnity terms are enforced.