Liability

Question 1

Liability Loss Exposures

Answer 1

The potential risk of financial loss resulting from being sued for negligence or other wrongful acts.

Question 2

Bodily Injury Liability

Answer 2

When a party is legally responsible for causing physical injury, harm or, death to another individual.

Question 3

Property Damage Liability

Answer 3

The insured’s legal responsibility for causing damage to someone else’s property.

Question 4

Personal Injury Liability

Answer 4

This coverage relates to non-physical injuries as a result of actions like defamation, false arrest, invasion of privacy, or wrongful eviction.

Question 5

Advertising Injury Liability

Answer 5

Related to harm caused by advertising activities such as copyright infringement, slander in advertisement, or false representations of the business.

Question 6

2 Primary Policy Limits? Define.

Answer 6

Per Occurrence Limit - The maximum amount the insurer will pay for a single claim/incident regardless of total cost. (Example -
Aggregate Limit - The total amount the insurer will pay for all claims within a specific policy period.