Q

WHY HAVE LIABILITY INSURANCE?

A

No person, however careful, can have real assurance that they will not be the defendant in a lawsuit alleging negligence that causes injury to another party or damages another person's property. Whether the person is found guilty or innocent, the cost of defense can be astronomical. In our system, it is important to insure against these costs. Keep in mind, we live in a very litigious and claims-conscious society.

Q

WHAT IS PROD/COMP OPS?

A

Product and completed operations refer to claims that arise out of the installation of a defective product.

Some examples are:

• A structural beam that fails and collapses.
• A ceiling fan that breaks apart and injures someone.
• An electrical switch that shorts out and burns down a house.

Q

WHAT IS MED PAY?

A

Medical Payments provide payment of medical expenses of someone injured at your jobsite (someone other than yourself or your employees), regardless of fault or legal liability. Med Pay is like accident insurance, payable in addition to any other sums the injured party is entitled to collect. Many times, the injured will accept the payment without pursuing any claims for damage.

Q

WHAT IS AN ADDITIONAL INSURED?

A

An endorsement used to attach your coverage to another party, typically a client who may have liability exposure arising out of your activities as a contractor.

Q

WHAT IS CONTRACTUAL LIABILITY?

A

This provides protection against the liability assumed under specific types of written agreements, such as construction contracts.

Q

WHAT IS AGGREGATE? WHAT IS OCCURRENCE?

A

Aggregate is the maximum amount payable for one policy year.
Occurrence is the maximum amount payable for one claim.