保险学Treish12eCh11.ppt

Risk Management and Commercial Liability Risk Chapter 11 Chapter Objectives Describe the content of insuring clauses and commercial general liability policies and the supplemental benefits of such policies Explain how limits of liability are determined in commercial liability policies Differentiate between claims-made coverage and occurrence coverage Identify the different parts of the commercial general liability policy, the policy’s exclusions, and several endorsements that can be used with it State the difference between professional liability insurance and regular liability insurance Indicate how businesses use commercial umbrella policies Introduction Liability insurance is an outgrowth of the legal relationships in society that can provide successful lawsuits against individuals for negligence As it became recognized that negligence could form the basis for a damage suit Demand arose for protection against the financial consequences of such suits The courts initially frowned on liability insurance, believing that contracts of this nature would tend to encourage restless conduct Resulting in more injuries to persons and property However later it was recognized that a true need existed for financial protection The existence of properly designed insurance did not cause an unwarranted degree of irresponsible conduct Today the law takes the attitude that failure to obtain liability insurance against the consequences of negligence in itself constitutes irresponsible financial behavior Common Liability Contract Provisions Certain provisions appear in virtually all liability insurance contracts They include The insuring clause Supplementary payments Definition of the insured Exclusions Limits of liability Specification of claims-made or occurrence coverage Notice The Insuring Clause A typical insuring clause in a liability policy might read like this We will pay those sums that the insured becomes legally obligated to pay as damages because of b