A Brief Explanation of Some Common Insurance Terms
regarding General Liability
General Aggregate - This is the limit the insurance company
will pay on your behalf for any number of claims during the policy period.
The most they will pay on one loss cannot exceed the Occurrence Limit.
Products & Completed Operations - The limit of this
coverage is the amount the insurance Company is obligated to pay on your
behalf based on policy coverage. This coverage extends protection to you
during manufacturing or contracting operations. An example would be if
you installed something incorrectly and caused damage.
Owners & Contractors Protective - if you have this
coverage option you can be protected against liability for actions of
other independent contractors and subcontractors Including liability due
to your failure in supervising the contractor's work.
Personal & Advertising Injury - This coverage affords
protection against claims such libel, slander, defamation of character
or invasion of privacy (personal Injury) and claims alleging written or
publicized offenses of the above examples.
Each Occurrence - The total amount shown as a limit of
this coverage establishes how much the insurance company is obligated
to pay on your behalf for each incident which leads to a claim made to
the company under the terms of your policy.
Fire Damage Liability - The maximum amount the company
will pay on your behalf, if you negligently cause a fire which damages
a building you lease or rent for your business.
Medical Expense - The limit the company will pay for medical
bills incurred by a person injured on your premises, regardless of whether
or not your organization was at fault for causing the injury. If your
business is deemed to be negligent, the responsibility falls within the
limit of bodily injury portion of coverage.
Deductible - The amount you are required to pay out of
the total cost of a claim against your policy; above which the insurance
company will pay to the limits of that section of your policy.
Bodily Injury & Property Damage - This section of a
policy defines certain covered losses and excludes certain losses. An
example of a covered loss under Bodily Injury could be "trip and
fall" accidents. Property damage claims relate to damage to physical
objects (an example is a building)
The above explains some general insurance terms which may help you
understand your policy better. Your policy should be closely read for
specific definitions, limitations, and exclusions.