Casualty Insurance Coverages and Policy Provisions
Liability fundamentals
Casualty coverage responds to the insured's legal liability to others. The commercial general liability (CGL) policy is usually occurrence-triggered: the injury or damage must occur during the policy period, even if the claim comes later. A claims-made policy (common for professional liability) responds only if the claim is made and reported during the policy period or an extended reporting period, subject to a retroactive date.
CGL Coverage A covers bodily injury and property damage; Coverage B covers personal and advertising injury; Coverage C provides medical payments. Limits include each occurrence, general aggregate, products-completed operations aggregate, personal and advertising injury, damage to premises rented, and medical expense. Additional insured endorsements extend coverage to others; an additional named insured has broader status. Umbrella policies sit above primary coverage, may drop down, and can broaden coverage; excess policies typically follow form.
Auto and other lines
The personal auto policy includes liability, medical payments or PIP, uninsured/underinsured motorist, and physical damage to your auto, plus duties and general provisions. Business auto policies use numbered symbols to designate covered autos. Homeowners Coverage E/F provides personal liability and medical payments.
Kentucky's Motor Vehicle Reparations Act creates no-fault PIP benefits (basic reparations) with a tort threshold and a choice to retain tort rights; distinguish PIP from medical payments coverage. Workers compensation provides exclusive remedy benefits for work injuries.
Worked example
A CGL has a $1,000,000 each-occurrence limit and $2,000,000 general aggregate. Two separate occurrences each produce $800,000 in covered damages: both are paid in full ($1.6 million), leaving $400,000 aggregate. A third occurrence is capped at the remaining $400,000.
Traps: applying occurrence wording to a claims-made policy; confusing PIP with med pay; overlooking the aggregate; assuming an additional insured has the same rights as a named insured.