General Liability
General Liability policies are the most common business liability policies. As the name implies, these policies cover "general" liability. More specific types of liability such as automobile liability, aircraft liability or professional malpractice liability are covered under specialized liability policies. General Liability policies generally cover the legal liability of your company for bodily injury to others and for damage to the property of others. There are a number of different policy forms. Some are limited to a business's liability as owner (or occupant) of your premises. Others offer broader coverage. One of the most commonly used policy forms is the Commercial General Liability (CGL) policy. It is really a collection of liability coverages which are highlighted below. The policy format is similar to an "All Risk" property policy in that the policy covers what it does not exclude. That is, the policy starts with a basic insuring agreement and then refines it with the policy’s exclusions, terms andconditions. Below are some of the common features and concerns of the CGL policy.

Grace Period
Period of time after the due date of a premium during which the policy remains in force without penalty.

Guaranteed Insurability (Guaranteed Issue)
Arrangement, usually provided by rider, whereby additional insurance may be purchased at various times without evidence of insurability.

Guaranty Association
Established by each state to support insurers and protect consumers in the case of insurer insolvency, guaranty associations are funded by insurers through assessments.

Host Liquor Liability
Liability arising from serving liquor at a business function. Companies in the business of selling or serving alcohol are not covered and require specialized insurance.

Incontestable Clause
Provides that, for certain reasons such as misstatements on the application, the company may void a life policy after it has been in force during the insured's lifetime, usually one or two years after issue.

Increasing Term Insurance
Term life insurance in which the death benefit increases periodically over the policy's term. Usually purchased as a cost of living rider to a whole life policy.

Independent Agency System
A system for marketing, selling and distributing insurance in which independent brokers are not affiliated with any one insurer but represent any number of insurers.

Independent Contractors
Your liability for bodily injury or property damage arising out of work done for you by an independent contractor. Coverage is not provided for the contractor, who should have their own insurance

Independent Contractors - Liability
Securing certificates of insurance from independent contractors can reduce the cost of your insurance and may shield your program from losses that could subsequently raise your costs of insurance. Certificates should evidence the minimum amount of insurance acceptable to your insurance company. Discuss this in detail with your broker.

Injury or damage
Injury or damage that is expected or intended from the standpoint of the insured. Coverage is limited to accidental (and not deliberate) incidents. Liability assumed under contract, except as permitted by the policy, or if the liability would exist in the absence of the contract. CGL policies typically allow coverage for specified contracts relating to the use of your premises. They also allow coverage for other contracts pertaining to your business, under which you assume the tort liability of another to pay bodily injury or property damages to a third party. This section should be carefully reviewed. Bodily injury to employees or resultant injuries to family members of employees. This type of loss should be covered under Workers Compensation insurance. Injury or damage caused by pollution. Usually a very broad exclusion. Some pollution liability coverage is available from Environmental Impairment Liability policies. Liability resulting from the use of automobiles, aircraft and watercraft (except non-owned watercraft as specified above). Separate policies are required. Property damage to property that you own, occupy or that is in your custody. (Fire Damage Legal Liability is an exception to this exclusion). Damage to your property, and property in your control, should be covered under property insurance rather than liability insurance. Claims related to the quality of your work or your products. CGL policies typically cover injury or damage resulting from your work or products. But they do not cover claims for the repair of faulty workmanship or materials, design errors, or for product recall. Additional exclusions, such as for professional errors or omissions, may be added to the basic policy format. Liability resulting from Asbestos is frequently excluded.

Inspection Report
Report of an investigator providing facts required for a proper decision on applications for new insurance and reinstatements.

Insurability
All conditions pertaining to individuals that affect their health, susceptibility to injury and life expectancy; an individual's risk profile.

Insurable Interest
Requirement of insurance contracts that loss must be sustained by the applicant upon the death of another and it must be sufficient to warrant compensation.

Insurance
Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss.

Insurance Companies
Recently, the insurance industry has become rather cyclical. Periods of competitive pricing and liberal coverages have been followed by periods of increased pricing and restricted coverage. This cycle has relatively little impact on some businesses. Other businesses, however, can be severely affected by the cycles. The impact of these cycles should be considered in determining your company's long term Risk Management needs. The financial condition of an insurance company is a key consideration in developing a sound program of protection. The most commonly used evaluation of insurance companies is A.M. Best’s Insurance Reports. Best assigns an alphabetical rating classification to most insurance companies, ranging from "A+" to "C-". They assign a numerical rating ranging from I (one) to XV (fifteen) based upon the financial size of an insurance company. Additional rating categories are utilized for more unique situations. Some insurance companies are also rated by Standard & Poor. You should inquire about the financial condition of any insurer you are considering. Insurance companies are also categorized as either "admitted" or "excess and surplus lines" companies. The distinction is based upon how the insurer is licensed to transact business within a particular state. Excess and surplus lines companies may not participate in state insurance guarantee or insolvency funds. This fact makes it even more important to review the financial condition of excess and surplus lines insurers.

Insurer
Party that provides insurance coverage, typically through a contract of insurance

Key Employee Insurance
Protection of a business against financial loss caused by the death or disablement of a vital member of the company, usually individuals possessing special managerial or technical skill or expertise. Also called key executive insurance.

Kidnap & Ransom Insurance
This is a specialty coverage, and not really a liability policy. Kidnap and Ransom insurance covers ransom payments and related expenses. Some policies also provide a crisis service. Premiums usually are not very large, so this coverage is a worthwhile precaution. Additional Liability coverages are available.