Casualty Insurance Basics
Negligence
Four elements must be proven: duty owed, breach of that duty, proximate cause, and damages. Defenses include comparative or contributory negligence, assumption of risk, and intervening cause. Liability can also arise without negligence through strict or absolute liability (inherently dangerous activities, defective products, workers compensation) and vicarious liability (an employer for an employee acting within the scope of employment).
Damages
Special damages (medical bills, lost wages), general damages (pain and suffering), and punitive damages. Liability policies generally pay compensatory damages; punitive damages are often excluded or limited. Supplementary payments - defense costs, bail bonds, loss of earnings - are paid in addition to the limits on liability forms such as the PAP and CGL.
Occurrence versus claims-made
An occurrence policy responds to injury that happens during the policy period, whenever the claim is filed. A claims-made policy responds to claims reported during the policy period or an extended reporting period, and the retroactive date determines how far back coverage reaches.
Key coverages
Medical payments to others pays small medical bills regardless of fault and without a liability determination. Personal and advertising injury covers libel, slander, false arrest, wrongful eviction and invasion of privacy.
Premises status
Trespasser carries the lowest duty, a licensee (social guest) must be warned of known hazards, and an invitee (customer) requires reasonable inspection and repair.
Traps
A social guest is a licensee, not an invitee. Medical payments coverage can respond even when the insured was not legally liable - that contrast is a favorite exam item.