Liability Definitions

Covers Insured’s legal liability in the event of bodily injury to others and damage to tangible property of others including defense costs for such damages.

Advertising Injury
Injury, other than bodily injury or personal injury, arising solely out of one or more of the following offenses committed in the course of advertising of your goods, products or services:

• oral or written publication of advertising material that slanders or libels a person or organization
• oral or written publication of advertising material that violates a person’s right of privacy
• infringement of copyrighted advertising materials or infringement of trademarked or service marked titles or slogans.

 Aircraft / Watercraft Liability
Coverage for aircraft and watercraft is limited.  If you have exposures in these areas, additional coverage must be purchased.

Directors & Officers Liability
This coverage protects individuals against allegations of “wrongful acts” in the course of their duties as directors or officers.  A completed application is required before a quote can be obtained.

D & O Business Litigation
Coverage for litigation for the wrongful acts of the Company, its directors, officers or employees.  The standard D & O policy covers only the directors and officers for all their wrongful acts.  A Business Litigation policy is expanded to cover the Company as well.  Types of litigation that would be covered by this policy that are not covered by traditional policies include:

• Employment-Related Suits
• Intellectual Property
• Products Errors & Omissions
• Anti-Trust
• Year 2000

Employee Benefits Liability
Provides coverage for sums an insured becomes legally obligated to pay because of negligent act, error or omission of any insured in the “administration” of the insured’s “employee benefit” programs.

Employment Practices Liability
Insures companies against a broad spectrum of employment-related claims including but not limited to: Wrongful Termination; Sexual Harassment, discrimination based on race, color, religion, national origin, age or sex, discrimination due to pregnancy, and discrimination of individuals with disabilities or life-threatening illnesses.

Fiduciary Liability
This coverage protects individuals against allegations of “wrongful acts” in the course of their duties as ERISA plan trustees.

Fiduciary Liability coverage would pay, on behalf of the plan trustees and the company, all sums that would be legally obligated to be paid because of a “breach of fiduciary duty.”  This breach means a violation of responsibilities, obligations or duties imposed upon fiduciaries by the Employee Retirement Income Security Act (ERISA) of 1974.

Foreign Liability
Your liability insurance covers suits brought in the U.S. or Canada.  Foreign exposures can result from overseas travel, or sale or use of your products overseas, or other exposures outside North America.  A Foreign Liability policy can provide coverage for suits brought overseas.

Increased Limits of Liability
Higher limits of liability are available.

Multi Media Liability
General Liability typically provides coverage in the event of Bodily Injury or Property Damage caused by your products.  You have no coverage for allegations of copyright or trademark infringement because of materials used on a web site, privacy rights violation by web site content, or other technology involving web sites and their use.

A specific application is required for a quote for this coverage.

Personal Injury
Injury, other than bodily injury, arising out of one or more of the following offenses committed in the course of your business, other than your advertising:

• false arrest, detention or imprisonment;
• malicious prosecution;
• wrongful eviction, wrongful entry, or invasion of the right of private occupancy;
• oral or written publication of material that slanders or libels a person or organization;
• oral or written publication of material that violates a person’s right of privacy.

Pollution Liability
Standard Commercial General Liability and Umbrella Liability policies absolutely exclude pollution.  In order for this exposure to be covered, a specific Pollution Liability policy would need to be purchased.  Additionally, damage to your own property (as well as clean-up expenses) resulting from pollution is limited on the Property policy.

Minimum premiums in the range of $10,000 – $25,000 are to be expected because the required surveys can be expensive.

The Pollution Liability exclusion has been interpreted so broadly by some insurers that liability resulting from such things as bleach spills, paint over spray, and / or gardener’s insecticides may be excluded.

Premises / Operations Liability
Bodily Injury or Property Damage arising out of the physical hazards of the insured’s premises or operations and occurring on premises owned or rented to the insured.  The most common example is the “trip and fall” exposure.

Products / Completed Operations
Bodily Injury or Property Damage occurring away from premises owned or rented by the insured arising out of the insured’s “products” or “work” except: (1) Product still in the physical possession of the insured, (2) Work that has not been completed or abandoned.

Coverage for clinical trials may be added to a Products Liability form.

Product Liability, Damage to Insured’s Products
Products Liability excludes damage to the products that you manufacture, sell, handle or distribute when the damage is caused by your products, or any part of them.  Your present Products Liability insurance would cover the resulting damage to other property, but not damage to the unit itself.

Product Recall, Contamination
Though such exposures are not covered in your insurance program, coverage for them may be available.