AIC Workers Compensation & Liability Claims Flashcards

What is 'general liability' insurance designed to cover?

Answer: Third-party bodily injury and property damage claims arising from the insured's business operations

Commercial general liability (CGL) insurance protects businesses against third-party claims of bodily injury, property damage, personal injury, and advertising injury.

What is 'products liability' in the context of general liability claims?

Answer: Legal liability arising from injuries or damages caused by a defective product the insured manufactured, distributed, or sold

Products liability claims arise when a defective or unreasonably dangerous product causes bodily injury or property damage to a consumer or third party.

In liability claims, what is the difference between 'negligence' and 'strict liability'?

Answer: Negligence requires proof of fault, while strict liability holds a party responsible regardless of fault or intent

Under strict liability, a defendant is held responsible for damages caused by their product or activity without the need to prove they acted negligently.

What is the 'completed operations' hazard in a CGL policy?

Answer: Liability for bodily injury or property damage occurring after the insured's work is completed and released for use

The completed operations hazard covers claims that arise after the insured finishes a job, such as a building defect that causes injury after construction is complete.

What is 'premises liability' in the context of liability insurance?

Answer: Liability for injuries or damages that occur on the insured's property due to conditions the insured controls

Premises liability holds property owners or occupiers responsible for injuries occurring on their property when they fail to maintain reasonably safe conditions.

What is 'contributory negligence' and how does it differ from 'comparative negligence'?

Answer: Contributory negligence bars any recovery if the plaintiff is at all at fault; comparative negligence reduces recovery proportional to the plaintiff's fault

Under contributory negligence, any fault by the plaintiff completely bars recovery, while comparative negligence allows recovery reduced by the plaintiff's percentage of fault.