Casualty Insurance Coverages, Exclusions, and Policy Provisions
Liability basics
Casualty policies pay sums the insured becomes legally obligated to pay as damages because of bodily injury or property damage, and provide a defense. On the CGL, defense costs are paid in addition to the limit; on most personal auto and homeowners liability coverages, defense is inside the limit.
Commercial general liability
CGL Coverages: A (bodily injury and property damage), B (personal and advertising injury), C (medical payments). The occurrence form responds to injury or damage that occurs during the policy period, whenever the claim is filed. The claims-made form responds to claims first made during the policy period, subject to a retroactive date and an extended reporting period. Standard exclusions: expected or intended injury, your product, your work, impaired property, contractual liability, liquor liability for non-host exposures, pollution, auto, and employers liability.
Auto and workers compensation
Business auto coverage uses numerical symbols - 1 = any auto, 7 = specifically described autos, 8 = hired autos, 9 = nonowned autos. Symbols are a favorite trick question. Workers compensation pays statutory benefits (medical, disability, death) without regard to fault and adds employers liability; in Kansas it is generally the exclusive remedy against the employer.
Trap: a claims-made policy will not respond to a claim first made after expiration unless an extended reporting period was purchased.
Worked example: A contractor's defective work damages the building itself - excluded as "your work." The same defective work causes damage to an adjacent building - covered, because that is resulting property damage to other property.
Rule of thumb: analyze every liability question with four questions - whose injury, whose property, which form, which trigger?