Newsletter Articles

iNews Articles 2011

Wellness Awareness

Glossary of Terms

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Colorado Nonprofit Insurance Agency is a wholly owned Subsidiary of Colorado Nonprofit Association

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COVERAGE B – Personal Injury and Advertising Injury. These liabilities cover libel, slander, violation of privacy, false arrest, malicious prosecution, etc.

Exclusions to Coverage B are:

• Intentional falsity
• Acts prior to policy effective date
• Violation of a penal statute
• Contractual liability
• Breach of contract
• Pollution
• Advertised quality or performance
• Wrongful description of the price
• Insureds in the business of advertising, broadcasting or publishing

COVERAGE C – Medical Payments. This is accident coverage, with a standard limit of $5,000 per person. It is often called “good-will coverage”. It covers accidents at your premises, or at activities you sponsor off-premises, regardless of your liability. This coverage has the advantage of discouraging lawsuits.

Exclusions to Coverage C are:

• Injury to insureds
• Injury to persons hired
• Injury to residents
• Workers’ compensation or disability benefits
• Injury arising out of athletics
• Injury from products or completed operations
• War
• Any injuries excluded under Coverage A

CGL Limits of Liability

The CGL is unique among liability policies in that it has six separate limits of liability. They are:

• General Aggregate Limit – The maximum limit payable under the policy for all occurrences that take place during the policy term.
• Products-Completed Operations Aggregate Limit – Products liability is liability arising out of products the insured sells, distributes or manufactures. Completed operations is liability arising out of the work the insured has completed.
• Personal and Advertising Injury Limit – The limit for any one offense covered under Coverage B. (see above)
• Each Occurrence Limit – The limit for any one occurrence covered under Coverage A. (see above)
• Fire Damage Limit – The limit for any one fire at a rented premise.
• Medical Expense Limit – The limit for payment to any one person under Coverage C. (see above)

CGL Endorsements

There are approximately 400 standard endorsements to the policy and many hundreds of additional nonstandard endorsements can also be attached. Endorsements can exclude, broaden, or enhance a policy.

The most important things that a nonprofit can do to minimize the likelihood of the type of claims that are filed under the CGL policy are to maintain its premises and monitor client safety precautions through repairs to premises and training in safety procedures.

The NEXT issue of iNews will address various professional types of liability coverages.