.0 Casualty (Liability) Insurance Basics
Learning Objectives
.1 Liability Insurance Concepts
Negligence
.2 Types of Liability and Liability Exposures
Legal Liability
.3 Limits of Liability
The limit of insurance is the maximum amount a liability policy will pay for a covered loss. This limit applies regardless of the number of insureds, claims submitted, lawsuits filed, or individuals or organizations seeking damages. Some policy limits apply separately to each covered occurrence or loss, while other limits establish the maximum amount the insurer will pay for all covered losses during the policy period. The way these limits are structured and identified depends on the type of policy and coverage provided.
.4 Common Policy Provisions and Conditions
Insurer Provisions
Recap of Chapter Four
1. Casualty insurance policies provide coverage for several types of liability exposures. Bodily injury refers to physical harm suffered by a person, including sickness, disease, and death. Medical payments coverage pays reasonable and necessary medical, surgical, hospital, and funeral expenses resulting from injuries that occur at an insured location or arise from the insured's activities. These payments are generally made regardless of whether the insured was negligent. By paying smaller medical expenses promptly, this coverage may help reduce the likelihood of a liability claim or lawsuit. Property damage liability covers physical injury to or destruction of tangible property belonging to another person. It may also cover the resulting loss of use, which occurs when the damaged property cannot be used. Personal injury refers to certain nonphysical injuries that harm another person's reputation, privacy, or emotional well-being. Examples include libel, slander, false arrest, and invasion of privacy. Advertising injury involves similar offenses that arise while the insured is advertising its goods, products, or services. Examples may include copyright infringement, misappropriation of advertising ideas, or the unauthorized use of another party's advertising material.