Comprehensive Liability Insurance
Definition
Comprehensive Liability Insurance is a policy providing businesses with coverage for negligence-based civil liability in several key areas:
- Bodily Injury and Property Damage Liability: On an occurrence basis, this covers claims resulting from the ownership, use, or maintenance of the premises, completed operations, and products.
- Bodily Injury and Property Damage Liability for Elevator Operations: Specific coverage for claims arising from the operation of an elevator.
- Medical Expenses: Coverage for medical expenses resulting from bodily injury incurred by a member of the general public through the use of the premises or involvement in the operations. Notably, medical expense reimbursement is provided without regard to the fault or liability of the business.
Examples
- Premises Liability: If a customer slips and falls in your store, Comprehensive Liability Insurance covers the medical and legal costs associated with the injury.
- Product Liability: If a product you manufacture causes injury or damage due to a defect, this policy covers the associated legal and medical costs.
- Elevator Liability: If someone is injured due to an elevator malfunction in your building, this insurance will cover the injury-related costs.
- Completed Operations: After the completion of a service, if a defect in the workmanship results in damage or injury, the coverage handles any resulting claims.
Frequently Asked Questions (FAQs)
Q1: What does “on an occurrence basis” mean?
A1: “On an occurrence basis” means that the policy covers claims that occur during the policy period, regardless of when the claim is actually filed.
Q2: Does Comprehensive Liability Insurance cover intentional acts?
A2: No, this type of insurance typically covers negligence-based claims but does not cover intentional acts.
Q3: Is there a limit to the medical expenses covered under this insurance?
A3: Yes, most policies will have specific limits on the amount covered for medical expenses. It is important to review your policy for these details.
Q4: Can I customize my Comprehensive Liability Insurance policy?
A4: Yes, many insurers offer customizable options to cater to the specific needs of your business.
Q5: Is property damage to my own business covered under this insurance?
A5: No, Comprehensive Liability Insurance typically covers third-party bodily injury and property damage, not damage to your business property.
Related Terms
General Liability Insurance: Insurance that provides coverage to a business for bodily injury, personal injury, and property damage caused by the business’s operations, products, or injury that occurs on the business’s premises.
Professional Liability Insurance: Also known as Errors & Omissions Insurance, it covers professionals for negligence and errors or omissions that injure their clients.
Product Liability Insurance: Coverage for businesses against claims resulting from products that cause injury or damage.
Online Resources
- Investopedia - General Liability Insurance
- The Balance Small Business - Comprehensive General Liability Insurance
Suggested Books for Further Studies
- “General Liability Insurance Coverage: Key Issues in Every State” by Randy J. Maniloff & Jeffrey W. Stempel
- “The Insurance Professional’s Practical Guide to Workers’ Compensation” by Chris Boggs
- “Insurance Operations, Markets, and Regulation” by Keith J. Crocker & Scott E. Harrington
Fundamentals of Comprehensive Liability Insurance: Insurance Basics Quiz
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