APA Commercial General key terms

An accident, including continuous or repeated exposure to substantially the same general harmful conditions, that causes bodily injury or property damage during the policy period. Intentional acts are generally excluded.

Physical injury, sickness, or disease sustained by a person, including death resulting from any of these at any time. It also covers mental anguish or shock arising from a covered physical injury.

Physical injury to tangible property, including resulting loss of use, or loss of use of tangible property that has not been physically injured. Electronic data is generally treated separately.

Offenses such as false arrest, wrongful eviction, libel, slander, invasion of privacy, and infringement of copyright or slogan in an advertisement. It is not the same as bodily injury.

Injury arising out of oral or written publication of material that libels or slanders a person or organization, violates privacy rights, or infringes copyright, trade dress, or slogan in an advertisement.

Bodily injury or property damage occurring away from premises the insured owns or rents, arising from the insured's product or completed work. It excludes products still in the insured's physical possession.

Legal responsibility for injury or damage caused by a product the insured manufactured, sold, handled, or distributed. Coverage applies after the insured has relinquished possession of the product.

Work the insured has finished and turned over to the owner or contractor, or for which the insured no longer has possession. Losses arising from that work fall under the completed operations hazard.

Coverage for bodily injury or property damage arising from the insured's ownership, maintenance, or use of premises and from business operations conducted on or away from those premises.

The most the insurer will pay for all covered losses combined during a policy period, regardless of the number of claims. It caps total exposure and is distinct from the per-occurrence limit.

The maximum amount payable for all damages because of bodily injury or property damage arising out of any one occurrence. Defense costs may be inside or outside this limit depending on the form.

The total limit applying to all covered claims other than products-completed operations and certain other specified exposures. It is the broadest aggregate on the standard occurrence form.

A separate aggregate that caps all products-completed operations losses in the policy period. It applies independently of the general aggregate and is often set at the same amount.

Bars coverage for property damage to the insured's own product arising out of it. The exclusion targets the product itself, not other property damaged by the product.

Excludes property damage to the insured's work arising out of it, including work performed by subcontractors. It prevents the insured from recovering the cost of repairing its own defective work.

Excludes property damage to the insured's work, including materials or parts furnished, arising out of that work. It generally does not bar coverage for damage to other property caused by the work.

Excludes damage to property that cannot be used because it incorporates the insured's defective product or work, where the loss can be repaired by removing or replacing that product or work.

Excludes damages claimed for the withdrawal, recall, inspection, repair, or replacement of the insured's product or work because a known or suspected defect exists in it or in a similar product.

Bars coverage for costs to recall, withdraw, or replace products due to a known or suspected defect, including costs to notify customers. It works together with the sistership exclusion.

Excludes bodily injury or property damage arising from the actual or threatened discharge of pollutants, with limited exceptions. Contractors often need a separate pollution endorsement for site exposures.

A broad pollution exclusion that removes the standard exceptions for hostile fire and certain premises-related discharges. It leaves very narrow coverage for pollution events.

Liability the insured assumes under a contract, such as an indemnity agreement in a construction contract. Coverage applies only to liabilities the insured would have had even without the contract, plus specified exceptions.

A defined category of agreements, such as leases and certain construction contracts, under which assumed liability is covered. The definition limits which contractual indemnities the policy will respond to.

A person or organization added to the policy by endorsement, typically by contract requirement, and granted insured status for specified operations. Their coverage is usually limited to liability arising from the named insured's work.

The form that adds a party as an insured and defines the scope of that status, such as ongoing operations only or completed operations included. Wording varies widely and controls the actual protection.

Automatically grants additional insured status to parties the named insured is required by written contract to add. It avoids issuing a separate endorsement for each contract.

A document summarizing coverage limits, forms, and dates for a policy. It is evidence of insurance only and does not amend, extend, or alter the actual policy terms.

An agreement in which the insurer gives up its right to recover claim payments from a third party who caused the loss. It is often required by contract and added by endorsement.

The insurer's right to pursue recovery from a third party responsible for a loss after paying the insured's claim. The insured must cooperate and cannot impair this right.

Amounts the insurer pays in addition to the limits of liability, such as defense costs, bail bonds, and expenses incurred at the insurer's request. These payments do not reduce the limits.

The insurer's obligation to provide a legal defense for covered claims, typically broader than the duty to indemnify. It ends when the applicable limit is exhausted.

The event or condition that activates coverage under a liability policy, such as an occurrence during the policy period. Courts apply different triggers, including exposure, manifestation, and continuous triggers.

A liability policy covering claims first made against the insured during the policy period, regardless of when the injury occurred. It generally requires a retroactive date and may include extended reporting periods.

A liability policy covering injury or damage that occurs during the policy period, regardless of when the claim is reported. It does not require a retroactive date.

The date on a claims-made policy before which covered injury or damage must not have occurred. Claims for events before that date are excluded even if made during the policy period.

An additional period after a claims-made policy expires during which claims for events occurring before expiration may still be reported. It is often called a tail and usually carries an extra premium.

A specified amount the insured must pay toward a loss before the policy responds. It differs from a deductible and often applies to defense costs as well as damages.

The amount the insured pays out of pocket for each covered claim before the insurer pays. On liability policies it may apply to damages, defense costs, or both, depending on the endorsement.

Excludes liability arising from the rendering of professional services, such as design or consulting work. Contractors and service firms may need a separate professional or errors and omissions policy.

A liability policy covering negligent acts, errors, or omissions in performing professional services. It fills gaps left by the professional services exclusion in a general liability policy.