CASUALTY PROVISIONS · 5 MIN READ

Insureds, Limits, and the Claims-Made Form

Section II Who Is An Insured builds the roster of protected parties automatically. For a corporation, the entity plus its executive officers and directors acting within the scope of their duties are insureds, and stockholders are insureds — but only for liability arising from their status as stockholders. Employees and, since the 2001 edition, volunteer workers are insureds for acts within their duties. A newly acquired or formed organization (other than a partnership, joint venture, or LLC) is automatically insured, but only until the 90th day after acquisition or the end of the policy period, whichever comes first, and never for pre-acquisition occurrences. Real estate managers and spouses of individual named insureds also gain defined status, while independent contractors and third-party managers need an additional-insured endorsement. Section III Limits of Insurance layers the caps. The Each Occurrence Limit governs any single occurrence, but two separate aggregates sit above it: the General Aggregate caps all Coverage A premises/operations losses plus Coverages B and C, while the Products-Completed Operations Aggregate is a distinct cap for products and completed-work losses. Exhausting one aggregate never erodes the other — a premises slip-and-fall is still covered after defective-product claims drain the products aggregate. The Damage to Premises Rented to You limit is a sublimit that caps fire damage to rented premises regardless of the larger occurrence limit. Supplementary Payments — defense costs, appeal bonds, release-of-attachment bonds, prejudgment interest, and certain bail bonds — are paid in addition to the limits on the occurrence form. The claims-made version of the CGL (CG 00 02) swaps the trigger: the claim must be first made against the insured during the policy period or an extended reporting period, and the injury must occur on or after the retroactive date shown in the declarations. The basic ERP attaches automatically for a short tail, and a supplemental ERP can be purchased for a longer one. Because moving the retroactive date forward at renewal silently strips prior-acts protection, retro-date integrity is the central negotiation point on any claims-made placement.