Occurrence. A lot of time and effort has been spent deciding what incidents liability policies would routinely cover. The old word was Accident, but it was too narrow and implied only sudden incidents. Today the word occurrence is commonly found in liability policies. The CGL reads:
"Occurrence means an accident, including continuous or repeated exposure to substantially the same general harmful conditions."
Insured contract. CGL does offer some coverage for a few contractual liabilities. These agreements include:
- sidetrack
- easement or license
- elevator maintenance.
Example. Let's say a railroad contracts to run a track along your warehouse property. Plus, the railroad holds you responsible for injury or damage from the sidetrack. That's a sidetrack agreement.
Impaired property. This is tangible property that can be restored.
Example. Some of your work is incorporated into another's work or product. It causes that work or product to be impaired. Under CGL, you have coverage. That coverage is not for your work, but for correcting the impaired property.
Realize liability insurance does not correct your poor workmanship; it just compensates others for your negligence.
What are the different coverages provided in the Commercial General Liability Policy?