Casualty Insurance
Liability fundamentals
Liability rests on negligence: duty owed, breach of that duty, proximate cause, and actual damages. Defenses include comparative fault (the claimant's recovery is reduced by their own share), assumption of risk, and intervening cause. Intentional torts and absolute (strict) liability - hazardous activities, products liability - bypass the negligence test.
Commercial general liability
The CGL occurrence form covers bodily injury and property damage (Coverage A), personal and advertising injury (B), and medical payments (C) for occurrences during the policy period. Claims-made forms respond only if the claim is reported during the policy period or an extended reporting period, subject to a retroactive date. Key exclusions: damage to the insured's own product or work, employer's liability, contractual liability (except insured contracts), and pollution.
Auto, workers compensation, and related lines
The personal auto policy provides liability, medical payments, uninsured/underinsured motorists, and physical damage (collision versus other-than-collision). Workers compensation pays statutory benefits - medical, disability income, death, rehabilitation - regardless of fault, and the exclusive remedy doctrine bars employee suits against the employer. Related lines include professional liability (E&O), directors and officers, and umbrella/excess.
Trap watch
Uninsured motorist pays when the at-fault driver has no coverage; underinsured motorist pays when the at-fault driver's limits are too low. CGL does not cover the insured's own defective work. Medical payments pays regardless of fault; liability pays only on legal liability.
Worked example
Insured carries 50/100 UM; the at-fault driver has 25/50 and the injury is worth $80,000. The insured collects $25,000 from the tortfeasor and $25,000 from UM - the UM limit caps total recovery at $50,000.